April 6 – 13, 2020 Recap
Equities Strongly Rebound
The S&P 500 had its largest weekly gain since 1974 with its bear market rebound underpinned by the Federal Reserve’s latest round of unprecedented policy stimulus to support the economy through the COVID-19 pandemic. The new wave of stimulus is primarily aimed at additional asset purchases as well as increased lending to businesses and local governments. Investor sentiment was also boosted by reports that new daily infection rates are slowing and Saudi Arabia and Russia both agreed to dramatically cut daily crude oil production rates. In the week ahead, major banks will be the first U.S. companies to report their first quarter earnings and investors are anxious about how severe the viral contagion is impacting profits.
For the week, the Dow Industrials surged 2,667 points (+12.670%), the S&P 500 jumped 12.15%, and the tech-heavy Nasdaq Composite advanced 10.59%. As our Chart of the Week shows below, equity markets are about halfway back from their March 23 low.
The Weekly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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