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US STOCKS-Stimulus hopes bolster Wall Street after worst session since 1987

Published 13/03/2020, 19:01
© Reuters.  US STOCKS-Stimulus hopes bolster Wall Street after worst session since 1987
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(For a live blog on the U.S. stock market, click LIVE/ or

type LIVE/ in a news window)

* Technology, financial stocks move higher

* Apple among biggest boosts to S&P 500, Dow

* Boeing jumps but still on track for worst week ever

* Indexes up: Dow 4.02%, S&P 3.81%, Nasdaq 3.50%

(Updates to early afternoon)

By Sanjana Shivdas and Medha Singh

March 13 (Reuters) - Wall Street clawed back losses on

Friday from its biggest declines in three decades, as investors

bet on more fiscal stimulus to thwart a coronavirus-driven

global recession.

All three main indexes jumped more than 6% in early trade

before paring gains on reports President Donald Trump was set to

declare a national emergency to contain the spread of the deadly

pathogen. The indexes were still 25% below their record highs hit

mid-February and were on track for their biggest weekly declines

since the 2008 financial crisis.

"There is a lot going on in the market right now and we need

the backing of the government more than we already have," said

Gene Goldman, chief investment officer at Cetera Investment

Management in California.

"We all agree that this virus is both a supply shock and a

demand shock, but eventually we will get out and we'll be fine."

The optimism was reflected across global equity markets,

with the MSCI world index .MIWD00000PUS gaining ground after

plunging into a bear market on Thursday. MKTS/GLOB

All the main S&P 500 sub-indexes were trading higher, with

financial stocks .SPSY rising 6.7% as expectations of further

liquidity measures by the Federal Reserve pushed up Treasury

yields. US/

Oil also looked set to end the week on a bright note, rising

about 3% after a near-collapse in prices on Monday due to a

price war between Saudi Arabia and Russia. The S&P 500 energy

index .SPNY added 0.7%. O/R

Expectations are now running high for U.S. Democrats and

Republicans to agree on a fiscal aid package. At 1:25 p.m. ET, the Dow Jones Industrial Average .DJI was

up 851.60 points, or 4.02%, at 22,052.22, while the S&P 500

.SPX was up 94.42 points, or 3.81%, at 2,575.06. The Nasdaq

Composite .IXIC was up 251.92 points, or 3.50%, at 7,453.72.

Travel stocks, hammered in the rout, were trading higher

with the S&P 1500 airlines index .SPCOMAIR up 6.4%.

Hotel operators Marriott International Inc MAR.O , Hilton

Worldwide Holdings HLT.N and Hyatt Hotels Corp H.N advanced

between 1% and 4%.

Boeing Co BA.N jumped 7.5% but was still on track for its

worst weekly slump in history on rising concerns about the

company's growing cash burn.

Apple Inc AAPL.O rose 5.7% and was among the top boosts to

the benchmark S&P 500 and the blue-chip Dow, as the iPhone maker

said it would reopen all 42 of its branded stores in China.

Charles Schwab Corp SCHW.N jumped 14.3% after the

brokerage reported the strongest start to a year, driven by

heightened market volatility. Advancing issues outnumbered decliners nearly 3-to-1 on the

NYSE and about 2-to-1 on the Nasdaq.

The S&P index recorded no new 52-week high and 117 new lows,

while the Nasdaq logged one new high and 612 new lows.

(Writing by Sagarika Jaisinghani; Editing by Sriraj Kalluvila

and Arun Koyyur)

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