Stock markets in Toronto and New York ended higher on Friday as bargain hunters stepped back into the market following sharp losses a day earlier, but the Dow Jones, the Nasdaq and the TSX’s main index still all had their worst week since March.
Friday’s trading was marked by wild swings up and down.
The U.S. Federal Reserve’s indication earlier this week of a long road to recovery and rising COVID-19 cases in the United States had cast a pall over investor optimism about a swift economic rebound. The S&P 500 ended down about six per cent on Thursday.
“We’ve seen a pretty big down move, and you’ve seen some retrenchment of that move,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.
The Toronto Stock Exchange’s main index gained 195 points, or a little over one per cent, to 15,250. A day earlier, the TSX had lost 650 points, so even after Friday’s mini rally it was still well below where it was at the start of the week.
Earlier this week, the tech-heavy Nasdaq confirmed it had been in a bull market since March 23, and the S&P 500 briefly tuned positive on the year.
On Friday, the S&P 500 closed above its 200-day moving average, a closely watched technical level that was last at about 3,013, after moving above and below the level.
The Dow Jones Industrial Average rose 475.69 points, or 1.89 per cent, to 25,603.86; the S&P 500 gained 39.21 points, or 1.31 per cent, to 3,041.31; and the Nasdaq Composite added 96.08 points, or 1.01 per cent, to 9,588.81.