U.S. stocks climbed Friday, ending the week with gains, as investors brushed off worries about a fresh wave of coronavirus infections and its impact on the economic recovery.
The S&P 500 dropped Thursday as investors continued to back away from bets on a smooth reopening from the coronavirus shutdowns. Fresh data showed that initial unemployment claims in the U.S. remain elevated, and the number of confirmed new Covid-19 cases in the U.S. hit a new single-day high Wednesday.
Major indexes wavered for much of the day before turning higher late in the session. The jump helped claw back losses from the prior session, when the S&P 500 fell and snapped its five-session winning streak.
U.S. equities lost steam on Tuesday after the White House reiterated a call to cap the next round of COVID-19 stimulus at $1 trillion or less. The sell-off accelerated in the final hour of trade after several Federal Reserve officials warned of challenges to the economy as infection rates soar across several states.
U.S. stocks jumped Monday following the holiday weekend, lifted by shares of everything from medical technology companies to banks. Global stocks have rallied to start the week, with China’s Shanghai Composite Index soaring 5.7% to its highest level since early 2018.
U.S. stocks jumped Thursday after the June employment report showed the economy added more jobs than expected, reassuring investors that the recovery is continuing. The U.S. gained 4.8 million jobs last month, while the unemployment rate ticked down to 11.1% from 13.3% in May. That marked the second month in a row that employers added jobs since massive waves of layoffs gripped the country earlier in the coronavirus pandemic.
U.S. stocks rose in the first session of July after data showed the labor market continued to improve last month. Stocks got a boost after the ADP National Employment Report showed the nonfarm private sector created 2.4 million jobs in June, with 70% of new jobs in the leisure, hospitality, trade and construction industries.
U.S. stocks wrapped up their best quarter in more than 20 years, a remarkable rally after the coronavirus pandemic brought business around the world to a virtual standstill. Just three months ago, investors were lamenting the end of the bull market — and the longest economic expansion on record — after major U.S. stock indexes lost about 35% of their value in less than six weeks. The subsequent rebound has been nearly as brisk.
Over the weekend, authorities in Florida, Texas, California and Arizona, which have accounted for much of the recent rise in U.S. coronavirus cases, have imposed new restrictions and retreated on reopening plans. Still, stocks have been largely resilient in recent weeks and climbed today. The S&P 500 is on track to end the month roughly flat. The Nasdaq is poised to close June with gains of more than 3%, largely thanks to a surge in the shares of tech giants like Apple and Microsoft.
The S&P 500 dropped Friday and headed toward a weekly loss as daily coronavirus infections increased rapidly in some states, stoking worries about a slowdown in the economy’s reopening.