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US STOCKS-Stocks bounce on stimulus hopes

Published 13/03/2020, 20:33
© Reuters.  US STOCKS-Stocks bounce on stimulus hopes
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Technology, financial stocks move higher

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

* Dow up 3.93%, S&P 500 up 3.77%, Nasdaq up 3.57%

(Updates to midafternoon, changes byline)

By Chuck Mikolajczak

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

Friday after its biggest one-day decline in three decades, as

investors set their hopes on more global fiscal stimulus to stem

a coronavirus-driven global recession.

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

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 about 25% below record highs hit in

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

declines since October 2008, the height of the financial

crisis.

The Democratic-led U.S. House of Representatives will pass a

coronavirus economic aid package on Friday, House Speaker Nancy

Pelosi said, but it was unclear whether Trump and his fellow

Republicans would support it. Given the steep declines on Thursday - the biggest one-day

percentage drop since "Black Monday" in October 1987 - investors

were hoping for a stronger bounce-back in today's session.

"We should have seen significantly more volume,

significantly more positive price action, breadth in the market

today given the sell-off that we saw specifically yesterday,"

said Peter Kenny, founder of Kenny's Commentary LLC and

Strategic Board Solutions LLC in New York.

"It isn't there, and that is an indication we are not even

close to being out of the woods."

The Dow Jones Industrial Average .DJI rose 833.72 points,

or 3.93%, to 22,034.34, the S&P 500 .SPX gained 93.62 points,

or 3.77%, to 2,574.26 and the Nasdaq Composite .IXIC added

257.23 points, or 3.57%, to 7,459.04.

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

financial stocks .SPSY rising 6.94% as expectations of further

liquidity measures by the Federal Reserve pushed up Treasury

yields, in what has become a very thin market. Oil also looked set to end the week with a silver lining, as

both Brent LCOcv1 and WTI crude CLcv1 settled higher 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

1.66%. Travel stocks, hammered in the rout, were trading higher,

with the S&P 1500 airlines index .SPCOMAIR up 3.66%

Hotel operators Marriott International Inc MAR.O , Hilton

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

gained at least 1%.

Boeing Co BA.N jumped 7.98% but was still on track for its

biggest weekly drop in its history on rising concerns about the

company's growing cash burn.

Apple Inc AAPL.O rose 4.97% 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. Advancing issues outnumbered declining ones on the NYSE by a

3.18-to-1 ratio; on Nasdaq, a 2.02-to-1 ratio favored advancers.

The S&P 500 posted no new 52-week highs and 118 new lows;

the Nasdaq Composite recorded two new highs and 656 new lows.

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