Stocks rebound, but still worst week since winter
Wall Street rebounded on Friday, led by companies that would benefit most from a healthier economy, but not by enough to keep the stock market from its worst week since the winter. The S&P 500 rose 49.50, or 1.1%, to 4,357.04 following another choppy day of trading. It swung between a loss of 0.4% and a gain of 1.6% through the day.
The Dow Jones Industrial Average climbed 482.54 points, or 1.4%, to 34,326.46, and the Nasdaq composite gained 118.12, or 0.8%, to 14,566.70. The Russell 2000 index of smaller companies rose 37.26 points, or 1.7%, to 2,241.63. Merck helped pace the market and leaped 8.4% after it said its experimental pill to treat COVID-19 cut hospitalizations and deaths by half. Prospects for an additional tool to tame the pandemic helped lift shares of airlines, hotels and companies hurt by restrictions on travel and other activities. United Airlines soared 7.9%, casino owner Caesars Entertainment swept 6.4% higher, and Live Nation Entertainment jumped 8.3%.
Energy producers, financial companies and other businesses whose profits are often closely tied to the economy’s strength were also helping to lead the way. The market’s widespread gains weren’t enough to make up for a dismal last few days. The S&P 500 still dropped to a weekly loss of 2.2%, its worst since February. A swift rise in interest rates earlier this week rattled the market and forced a reassessment of whether stocks had grown too expensive, particularly the most popular ones. On Friday, the yield on the 10-year Treasury fell back to 1.46% from 1.52% late Thursday. That’s still well above its perch of 1.32% from a week and a half ago.
September was also the worst month for the S&P 500 since March 2020, when markets plunged as COVID-19 shutdowns took hold. Among the worries that have weighed on the market: The Federal Reserve is close to letting off the accelerator on its support for markets, economic data has recently been mixed following an upturn in COVID-19 infections, corporate tax rates may be set to rise, and political turmoil continues in Washington.