April 13 – 17, 2020 Recap
Back-to-Back Weekly Gains
Stocks powered higher last week amid optimism toward reopening segments of the economy and speculation that a COVID-19 treatment may be approved sooner than previously expected. Friday’s 2.7% advance and 3% weekly gain trimmed the year-to-date loss on the S&P 500 to 11%. Equity markets have rebounded strongly from its latest bear-market low, with benchmark stocks up over 28% from March 23, yet the S&P 500 is still 15% below its February 19 all-time high. Overseas, China announced its economy contracted 6.8% from a year ago during the first quarter, its first negative GDP report since at least 1992. China’s communist state office projects full-year GDP growth of 2% and said business activity has rebounded to 83% of capacity, up from 70%. The nation also upwardly revised its death toll by 39%, adding over 1,000 fatalities in Wuhan.
For the week, the Dow Industrials gained 2.21%, the S&P 500 rose 3.06%, and the tech-heavy Nasdaq Composite advanced 6.09%. Following a 12.15% gain the week prior, the S&P 500 recorded its first back-to-back weekly gains since before the COVID-19 pandemic triggered a sell-off in late-February. The Nasdaq Composite rallied 17.32% over the past two weeks, trimming its year-to-date loss to just 3.59%.
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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