Stocks climb on Fed stimulus news
FOX Business’ Lauren Simonetti says the Federal Reserve’s decision to purchase corporate junk bonds gave many industries confidence on Thursday.
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It will be a quiet day in Good Friday trading as many global markets are closed.
U.S. markets are closed for the holiday after finishing one of it's best weeks in 45 years thanks to the Federal Reserve's titanic effort to support the economy through the coronavirus crisis.
European markets are also closed.
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Some Asian markets did trade. Japan's Nikkei advanced, gaining 0.8 percent. China's Shanghai Composite lost 1 percent.
On Thursday, the U.S. central bank announced programs to provide up to $2.3 trillion in loans to households, local governments and businesses as the coronavirus outbreak tips the country into what economists say may be the worst recession in decades.
FED TO PROVIDE UP TO $2.3T OF LOANS TO SUPPORT ECONOMY
The Fed’s actions completely overshadowed a government report that another 6.6 million people applied for unemployment benefits last week.
|I:DJI||DOW JONES AVERAGES||23719.37||+285.80||+1.22%|
|I:COMP||NASDAQ COMPOSITE INDEX||8153.575088||+62.67||+0.77%|
The S&P 500 rose 39.84 points to 2,789.82. The Dow Jones Industrial Average added 1.2 percent, to 23,719.37, and the Nasdaq climbed 0.8 percent.
While hopes are building that a plateau may be arriving for infections in several hotspots, it’s not assured.
In the meantime, the head of the International Monetary Fund said Thursday the global economy is set for its deepest recession since the Great Depression.
One in 10 U.S. workers has lost their jobs in the last three weeks.
UNEMPLOYMENT CLAIMS SWELL TO 6.6 MILLION, AS CORONAVIRUS PARALYZES US ECONOMY
Gains Thursday were capped by another abrupt downdraft in oil prices, which have collapsed amid the coronavirus pandemic.
Benchmark U.S. crude oil fell $2.33, or 9.3 percent, to settle at $22.76 per barrel after investors learned that Russia and members of OPEC had reached a preliminary agreement to reduce production by 10 million barrels a day.
But the deal appeared to hinge on Mexico after Kuwait’s oil minister tweeted that Mexico had disrupted a marathon teleconference seeking a deal.
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Brent crude fell $1.36, or 4.1 percent, to $31.48 per barrel.
Oil markets were closed Friday.
The Associated Press contributed to this article.
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