U.S. equity markets opened sharply higher Friday, rebounding from their steepest single-day selloff since the Black Monday crash of 1987, as investors focus on economic stimulus packages at home and abroad.
The Dow Jones Industrial Average surged 1,246 points, or 5.9 percent, while the S&P 500 and Nasdaq Composite jumped 5.3 percent and 5.7 percent, respectively. All three of the major averages lost at least 9.5 percent Thursday amid an avalanche of cancelations and postponement of large social gatherings and sporting events aimed at slowing the spread of the new coronavirus.
|I:DJI||DOW JONES AVERAGES||22119.09||+918.47||+4.33%|
|I:COMP||NASDAQ COMPOSITE INDEX||7484.845495||+283.04||+3.93%|
Friday’s gains come as the U.S. Congress, which was supposed to recess on Friday, works overtime to pass a stimulus package and reports indicate Europe is set to announce measures on Monday that could amount to 1 percent of gross domestic product.
Some of the hardest-hit corners of the market were among the biggest gainers on Friday.
The cruise operators Carnival Cruise Corp., Norwegian Cruise Line Holdings and Royal Caribbean Cruises, which have collectively seen nearly $50 billion — or over 70 percent of their value — erased amid the selloff, all gained at least 20 percent early in the session before paring their gains.
|NCLH||NORWEGIAN CRUISE LINE HOLDINGS LTD.||10.35||+0.70||+7.25%|
|RCL||ROYAL CARIBBEAN CRUISES||30.60||+0.33||+1.09%|
American Airlines, Delta Air Lines and United Airlines, which have all lost more than half their value, were up at least 10 percent.
|AAL||AMERICAN AIRLINES GROUP INC.||14.49||+1.04||+7.73%|
|DAL||DELTA AIR LINES INC.||36.59||+2.88||+8.54%|
|UAL||UNITED AIRLINES HLDG.||38.80||+1.72||+4.64%|
The online travel-booking sites Expedia and Booking Holdings also saw outsized gains.
|EXPE||EXPEDIA GROUP, INC.||66.02||+0.98||+1.51%|
|BKNG||BOOKING HOLDINGS INC.||1,324.48||+44.08||+3.44%|
Bank stocks soared as the yield on the 10-year Treasury note climbed 7 basis points to 0.922 percent and the yield curve steepened. Financial institutions make the majority of their money from the difference between interest paid to depositors — who supply the money a bank lends — and interest charged to borrowers.
|JPM||JP MORGAN CHASE & CO.||94.88||+6.83||+7.76%|
|BAC||BANK OF AMERICA CORP.||22.35||+1.84||+8.96%|
|WFC||WELLS FARGO & COMPANY||28.43||+1.23||+4.52%|
Big technology names, like Apple, Amazon and Tesla, were also in favor.
Meanwhile, the Walt Disney Company gained despite announcing the closure of both its Disney World and Disneyland theme parks.
|DIS||WALT DISNEY COMPANY||98.58||+6.77||+7.37%|
On the earnings front, Gap reported better-than-expected top- and bottom-line results, but warned it would take a $100 million revenue hit in the current quarter due to the COVID-19 outbreak.
Elsewhere, Slack Technologies, the workplace-messaging platform expected to benefit from more employees using technology to connect as they work from home during the outbreak, gave a disappointing first-quarter revenue forecast.
|WORK||SLACK TECHNOLOGIES INC.||18.36||-2.98||-13.98%|
European markets were sharply higher as Britain’s FTSE spiked 7.5 percent, France’s CAC rallied 7.9 percent and Germany’s DAX gained 7.2 percent.
Markets in Asia were under pressure with Japan’s Nikkei plunging 6.1 percent while Hong Kong’s Hang Seng and China’s Shanghai Composite shed 1.1 percent and 1.2 percent, respectively.