From Market Insider
- US stocks rose Friday as positive signs that the economy will reopen soon offset a dismal April jobs report.
- The report showed that the US economy lost a record 20.5 million jobs last month. That pushed the unemployment rate to 14.7%, the highest since the Great Depression.
- First-quarter earnings season continued, and US crude oil prices rose roughly 4%.
US stocks rose Friday as investors looked past a dismal April jobs report to encouraging signs of economic reopening.
The Friday report from the Labor Department showed the US economy lost a record 20.5 million jobs last month amid sweeping lockdowns intended to combat the spread of coronavirus. The unemployment rate surged to 14.7%, the highest since the Great Depression.
“The market has already anticipated this historic fall in the economy by dropping dramatically in late February and most of March and likewise has already anticipated a bottom and bounce from the lows,” said Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance.
Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Friday:
- S&P 500: 2,909.97, up 1%
- Dow Jones industrial average: 24,167.14, up 1.2% (291 points)
- Nasdaq composite: 9,034.62, up 0.6%
Investors have been encouraged by signs of a US economic reopening, as some states have started allowing non-essential businesses to go back to work. In addition, positive signals of easing tension from the US-China trade war lifted sentiment.
First-quarter earnings season is still in full swing. Shares of Uber gained 6% on trading Friday following its earnings report Thursday after the bell. The ride-hailing company posted a larger-than-expected loss, but said it could be profitable in 2021.
US crude oil also gained Friday, following a price increase on Thursday from Saudi Arabia and signs that demand is starting to rebound after being crushed by coronavirus. WTI crude rose as much as 6%, to $24.99 per barrel on Friday.
