Dow surges 455 points as economic-reopening hope overshadows historic job losses
- US stocks rose on Friday as positive signs that the economy would reopen soon overshadowed a dismal April jobs report.
- The US economy lost a record 20.5 million jobs last month. That pushed the unemployment rate to 14.7%, the highest since the Great Depression.
- First-quarter earnings season continued, and US crude oil prices rose roughly 4%.
- Read more on Business Insider.
US stocks rose on Friday as investors looked past a dismal April jobs report to encouraging signs of economic reopening.
The Labor Department said on Friday that the US economy lost a record 20.5 million jobs last month amid sweeping lockdowns intended to curb the spread of the coronavirus. The unemployment rate surged to 14.7%, the highest since the Great Depression.
"The market has already anticipated this historic fall in the economy by dropping dramatically in late February and most of March and likewise has already anticipated a bottom and bounce from the lows," said Chris Zaccarelli, the chief investment officer for the Independent Advisor Alliance.
Here's where US indexes stood at the 4 p.m. ET market close on Friday:
- S&P 500: 2,929.80, up 1.7%
- Dow Jones industrial average: 24,331.32, up 1.9% (455 points)
- Nasdaq composite: 9,121.32, up 1.6%
Investors have been encouraged by signs of a US economic reopening, as some states have started allowing nonessential businesses to go back to work. In addition, signs of easing tensions from the US-China trade war lifted sentiment.
First-quarter earnings season is still in full swing. Shares of Uber gained 6% on Friday following the company's earnings report after the bell on Thursday. The ride-hailing company posted a larger-than-expected loss but said it could be profitable in 2021.
US crude oil also gained on Friday following a price increase on Thursday from Saudi Arabia and signs that demand is starting to rebound. West Texas Intermediate crude rose as much as 6%, to $24.99 per barrel, before settling roughly 4% higher.
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