Stocks rise as tech bounces, but S&P 500 and Dow still on pace for 4-week losing streak
September 25, 2020 @ 19:30 +03:00
U.S. stocks rose slightly on Friday as tech shares recovered some of their losses for the month. However, Wall Street was still headed for its fourth consecutive week of losses. The Dow Jones Industrial Average traded 103 points higher, or 0.4%. The S&P 500 climbed 0.6%. The Nasdaq Composite popped 1.2%.
Shares of Amazon rose 1.1% and Facebook gained 0.6%. Apple advanced 2.3% and Microsoft rose 1.7%. Cruise operators Carnival, Norwegian Cruise Line and Royal Caribbean were up 4.4%, 6.7% and 4%, respectively after an upgrade from a Barclays analyst. The “sell-off has stabilized a bit over the last few days, but there are still no real signs of strength,” said Mark Newton, managing member at Newton Advisors, in a note. “Thus, the trend remains bearish and not much to bet on a rebound.”
For the week, the Dow entered Friday’s session down 3% while the S&P 500 has lost 2.2%. The Nasdaq Composite is down 1.1% week to date. This would mark the benchmarks’ longest weekly slide since August 2019. The major averages have also had a tough month, with the S&P 500 falling more than 7% in September. The Dow has dropped 5.7% over that time period and the Nasdaq is down 9.4% month to date.
The state of the economic recovery has become a hot topic in recent weeks on Wall Street, especially after the death of Supreme Court Justice Ruth Bader Ginsburg led many strategists to downgrade the chances for another relief package before the election. On Thursday, Goldman Sachs cut its fourth-quarter projection for gross domestic product growth to 3% on an annualized basis, down from 6%.
House Democrats are preparing a $2.4 trillion relief package that they could vote on as soon as next week, a source familiar with the plans told CNBC. The bill would include enhanced unemployment benefits and aid to airlines, but the overall price tag remains well above what Republican leaders have said they are willing to spend.
Stocks rise as tech bounces, but S&P 500 and Dow still on pace for 4-week losing streak, CNBC, Sep 25