Futures on the Dow and broader U.S. stock market surged in after-hours trading Thursday, as Boeing (NYSE: BA) staged a large relief rally and President Trump outlined new federal guidelines for bringing the economy back online.
Contracts on the Dow Jones Industrial Average rose by as much as 920 points Thursday evening. At its highest point, the futures contract was valued at 24,327.00.
By comparison, the Dow Jones index closed at 23,537.68 in New York trading, up 33.33 points, or 0.1%, on the day.
S&P 500 futures jumped 2.1% to 8,915.25. Nasdaq 100 mini contracts also gained 2.1% to reach 8,915.25.
Shares of Boeing Co rose 7% after-hours, where it was on track to erase nearly all of its Thursday losses. Boeing plunged 8% in New York trading following reports of 150 Max 737 cancellations in March alone.
President Trump released new guidelines Thursday for a “phased” reopening of the economy that puts onus on state governors to decide how to end their respective lockdowns.
The president said (as per The Wall Street Journal):
America wants to be open, and Americans want to be open… We must have a working economy, and we want to get it back very, very quickly.
The new framework, known as Opening Up America Again, outlines a three-phase process for ending the lockdown and opening up the country. Trump said his administration is not seeking to open everything at once, “but one careful step at a time.”
Members of the president’s newly-appointed economic task force have urged him to increase COVID-19 testing before deciding to ease restrictions. On Thursday, Trump said states are responsible for obtaining medical supplies and testing materials, but reiterated Washington’s role in providing backup support.
The Trump administration is eager to get the economy back online after several economic reports pointed to imminent recession in the coming months. Data on consumer spending, manufacturing, housing and the labor market have flashed warning signs not seen in the post-war period.
The latest blow came Thursday when the Labor Department said 5.245 million people filed for first-time unemployment benefits last week. Roughly 22 million people have filed for benefits in the past month due to coronavirus.
Astonishingly, the stock market is humming along–despite excruciatingly bad earnings from big banks–as investors continue to bet on Federal Reserve liquidity and a quick economic rebound.
Last modified: April 17, 2020 1:03 AM UTC