Markets finished the week strong despite a pullback in the last hour of trading Thursday. The Dow Jones closed 286 points higher and rose 12.7% this week. It was the S&Ps best week since 1974, bringing the close to 2789. It was the Nasdaq’s best since 2009 with a market close of 8153.
Oil prices initially rallied Thursday but as it became clear that OPEC and non-OPEC producers would require more discussions before reaching an agreement on supply, index gains faded in the last hour of trading. Even though oil has rallied 30% since the beginning of April, the price of oil is down more than 60% from the start of 2020.
Despite the 6.6 million new unemployment claims—bringing the total to 17M—investors seemed to be at ease with news of an additional Fed stimulus $2.3 trillion aimed at providing deferrable loans to small and medium businesses. Additionally, the markets were buoyed by news of fewer cases of coronavirus infections and a reduction of COVID-19 related deaths in New York.
Looking forward, all eyes are on earnings reports with big banks like JP Morgan Chase, Bank of America and Goldman Sachs leading off next week. With the unprecedented halt in economic activity it will be difficult for investors to interpret the results of upcoming earnings and the outlook for future quarters. How the markets react is uncertain but the best thing to do is stay invested and to stay in regular contact with your financial advisor.
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