After a turbulent week on Wall Street, stocks rallied on Friday during the final moments before closing. Markets had fallen sharply multiple days to levels not seen since the stock market crash of 1987.
But on Friday, the president declared a national emergency for the U.S. and promised support for a House-led economic aid package. President Donald Trump said that the government would offer $50 billion in aid to fight the coronavirus. The announcement was coordinated with industry leaders and sent shares rising.
The House of Representatives voted to pass the bipartisan Families First Coronavirus Response Act today. The bill vows to ensure that affected workers across America have paid leave in the event they or a family member become infected with the virus. The act would make testing of the coronavirus free for all Americans. The stimulus also bolsters existing unemployment benefits and food assistance. The proposed bill now goes to the Senate on Monday for final approval.
Nancy Pelosi, House Speaker, noted: “Tonight’s legislation presents a strong stimulus to our economy to protect the health and financial security of America’s working families as we fight the coronavirus.”
While stocks were still down 8 percent for the week, Friday’s trading ended the week on a more positive note.
The top three indexes rallied more than 6 percent during early trading on Friday. The S&P 500 gained 230.38 points and ended up 9.29 percent higher. Meanwhile, the Dow Jones Industrial Average scored big with 1,985.00 points higher, rising 9.36 percent. The Dow stood at 23,185.62. The Nasdaq’s win wasn’t too shabby either as it rose sharply to 7,874.88 and gained 673.07 points on Friday, or 9.35 percent higher than the previous session.
All in all, the indexes were still below February’s record high by 20 percent. But, the S&P was the win for the week as it had the largest one-day percentage gain since October 2008. So far for the year, the S&P 500 has declined 12 days in all.
The oil market also settled slightly higher after nearly collapsing earlier in the week because of the Saudi Arabia and Russian price war. Travel stocks, which have been negatively impacted by the travel ban, ended higher as well. Hilton and Marriot stocks gained at least a percentage point. Boeing was also higher by 9.92 percent, but overall, the past week was the airline’s worst week on Wall Street.