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US STOCKS-Stocks stage furious rally late after national emergency declared

Published 13/03/2020, 21:49
© Reuters.  US STOCKS-Stocks stage furious rally late after national emergency declared
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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

* Dow up 9.36%, S&P 500 up 9.29%, Nasdaq up 9.35%

(Updates to close)

By Chuck Mikolajczak

March 13 (Reuters) - Wall Street staged a furious rally in

the waning moments of the session on Friday after U.S. President

Donald Trump declared a national emergency to combat the rapidly

spreading coronavirus, although major averages still suffered

sharp losses for the week.

In a volatile session, all three main indexes jumped more

than 6% in early trading before paring to a gain of as little as

0.55% on the S&P 500 .SPX before rallying towards the close as

Trump made the announcement with industry leaders of about $50

billion in federal aid to fight the disease. "The initial take, he started talking about $50 billion, the

market asked 'where is that going?'" said Peter Jankovskis,

co-chief investment officer at OakBrook Investments LLC in

Lisle, Illinois.

"But as he's been bringing these various leaders to the

front and they have been talking about what they are doing, that

is really what the market is responding to."

The indexes were still about 20% below record highs hit in

mid-February, and each saw declines of at least 8% for the week.

Since hitting the highs, markets have been besieged with big

swings in the market, nearly matching as many days with declines

of at least 1% as all of 2019. Friday's surge was the biggest

one-day percentage gain for the S&P 500 since Oct 28, 2008.

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. The Dow Jones Industrial Average .DJI rose 1,985 points,

or 9.36%, to 23,185.62, the S&P 500 .SPX gained 230.38 points,

or 9.29%, to 2,711.02 and the Nasdaq Composite .IXIC added

673.07 points, or 9.35%, to 7,874.88.

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

financial stocks .SPSY rising 13.23% 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

8.84%. Travel stocks, hammered in the rout, were trading higher,

with the S&P 1500 airlines index .SPCOMAIR up 11.58%

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 9.92% but suffered its biggest

weekly drop in its history on rising concerns about the

company's growing cash burn.

Apple Inc AAPL.O rose 11.98% 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

4.73-to-1 ratio; on Nasdaq, a 2.95-to-1 ratio favored advancers.

The S&P 500 posted 1 new 52-week highs and 120 new lows; the

Nasdaq Composite recorded 2 new highs and 703 new lows.

Volume on U.S. exchanges was 17.10 billion shares, compared

to the 13.02 billion average for the full session over the last

20 trading days.

Volatility is back on Wall Street png https://tmsnrt.rs/39JliL5

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