US stock futures rose early Friday morning after more technological gains led the Nasdaq Composite to wipe out all of its losses for 2020.
The Dow Jones Industrial Average rose 235 points, which implies an opening gain of around 276 points on Friday. The S&P 500 and Nasdaq 100 futures also reported opening gains on Friday for the two indices.
The tech-rich Nasdaq rose 1.4% during the checkout session, finishing almost 0.1% since the start of the year. Gains from Facebook, Amazon Alphabet and Apple helped bring the index back to positive territory for 2020. At one point, the Nasdaq was down more than 25% since the start of the year.
“It’s really amazing given that we’re still working from home,” said JJ Kinahan, chief market strategist at TD Ameritrade, about the average recovery of losses in 2020. “Our reality is that we’re working from home and part of the economic demand seems to be less, but these actions continue to fight. “
Kinahan also noted that the market price continued to rapidly reopen the US economy after the coronavirus forced economic activity to a near halt. “There is this feeling of” OK, we’re going to go back to work and things will get better. “But how quickly will they improve and will it be sustainable?”
The shares which would benefit from the reopening of the economy have increased overall. Norwegian Cruise Line and Carnival both gained more than 5% while Hilton Worldwide climbed 1.6%. American and Delta Air Lines both climbed more than 3% while JetBlue gained 2%. MGM stations jumped 7.3%.
Gains earlier Thursday also pushed the Nasdaq up 35.4% from its March 23 low. The S&P 500 also increased 31.5% during this period.
But Michael Shaoul, president and chief executive officer of Marketfield Asset Management, said recent market movements – which have been tame compared to others seen this year – suggest “understandable fatigue with the constant flow of conflicting information about the progression of the virus and the potential for happier and more drastic results in the coming months. “
“It also suggests that the relief that the worst medical scenarios are likely to occur is replaced by an understanding of the magnitude of the task of reopening and rebuilding economies in the months to come, leaving the SPX unable to progress and challenge key resistance at 3000, “he said in a note.
Thursday’s increase came even after the release of even more dismal employment data. Weekly jobless claims data showed that more than 33 million Americans filed for unemployment in the seven-week period ending May 2.
The Labor Department will release its monthly employment report on Friday. Economists polled by Dow Jones predict that more than 21 million jobs were lost in April.
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