- US stocks gained on Thursday as investors weighed the effect of surging coronavirus cases on economic-reopening efforts.
- Bank stocks led a midday reversal into positive territory after the Federal Deposit Insurance Corporation rolled back post-financial-crisis rules.
- Meanwhile, states such as Texas, Florida, and Arizona have seen spikes in COVID-19 cases, spurring concerns of a slower-than-expected economic reopening.
- US weekly jobless claims totaled 1.5 million in the week that ended on Saturday, roughly in line with the previous week and slightly above economists’ forecasts.
- Read more on Business Insider.
US stocks closed higher on Thursday, capping a volatile trading session that saw investors weigh spiking coronavirus cases against a rollback of banking regulations.
Bank stocks led a midday reversal into positive territory after the Federal Deposit Insurance Corporation approved changes to the Volcker rule that would make it easier for banks to invest in funds such as venture capital.
Meanwhile, coronavirus cases have spiked in states such as Texas, Florida, Arizona, and California, threatening to slow economic-reopening efforts across the US. Global cases of COVID-19 are also on the rise.
“Whether we’re seeing a second wave or just a continuation of the first wave, the outbreak may reverse actions taken by governments to re-open their economies, hence curbing hopes of a smooth recovery,” said Hussein Sayed, the chief market strategist at FXTM.
US weekly jobless claims totaled 1.5 million in the week that ended on Saturday, roughly in line with the previous week and slightly above economists’ forecasts. It was the second week in a row that weekly claims came in higher than forecasts.
Here’s where US indexes stood at the 4 p.m. ET market close on Thursday:
- S&P 500: 3,083.76, up 1.1%
- Dow Jones industrial average: 25,745.60, up 1.2% (300 points)
- Nasdaq composite: 10,017.00, up 1.1%
Shares of Wirecard fell 75% after the German payments company filed for insolvency, the latest in the fintech’s $2 billion accounting-scandal saga.
Oil prices gained along with equities. West Texas Intermediate crude rose as much as 3%, to $39.15 per barrel. Brent crude, the international benchmark, gained 2.9%, to $41.46 per barrel, at intraday highs.
The so-called reopening trade suffered on fears of surging coronavirus cases, with shares of cruise lines and airlines falling throughout the choppy trading session.
Read more: A high-growth fund manager is tripling her peers’ returns in 2020 while targeting nontech industries like beer and restaurants. She breaks down how she picked out 5 of the most innovative companies.
Apple on Wednesday announced that it would close more of its stores in the Houston area following a spike in cases. Additionally, Disney said it would delay the opening of its parks in California beyond July 17.
Texas Gov. Greg Abbott on Thursday paused the state’s reopening plan to help contain a recent spike in coronavirus cases and hospitalizations. Texas was one of the first states to begin to reopen from lockdowns in early May.
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