By CCN.com: The Dow and broader U.S. stock market rallied on Friday, as investors shrugged off dismal factory data amid hopes that the Trump administration would ease restrictions on Huawei, China’s largest telecommunications company.
Dow Clings to Friday Recovery
All of Wall Street’s major indexes headed for gains in the final session of the week, bouncing back from a brutal Thursday session that saw the Dow drop as much as 448 points. On Friday, the Dow Jones Industrial Average climbed 95.22 points, or 0.4%, to reach 25,585.69. The index opened sharply higher, which reflected a fairly strong pre-session for Dow futures.
The broad S&P 500 Index of large-cap stocks gained 0.1% to 2,826.06. Seven of 11 primary sectors contributed to the rally, with financials leading the way higher.
Meanwhile, the technology-focused Nasdaq Composite Index edged up 0.1% to finish at 7,637.01.
Stock Market’s Weekly Losses Mount as Economy Cools
The Dow’s recovery on Friday failed to halt another weekly decline for the benchmark average. The Dow has registered losses in each of the last five weeks and has reversed nearly 1,100 points from its yearly high. An escalating U.S.-China trade war and mixed economic data have undermined the market’s bullish revival in recent weeks.
On Friday, the Department of Commerce said U.S. durable goods orders declined more than expected last month, raising concerns about a broad cooldown in the economy at the start of the second quarter.
Orders for manufactured goods meant to last three years or more plunged 2.1% in April following a downwardly revised gain of 1.7% in March.
Orders for nondefense capital goods excluding aircraft, a key proxy for business spending plans, fell 0.9%, official data showed.
Weak manufacturing data join a slew of other indicators that show the U.S. economy slowing down in the second quarter. Last week, government data showed a small drop in retail sales, an indicator that has slumped in three of the past five months. Housing activity has also cooled, as evidenced by the recent fall in existing and new home sales.
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Last modified: September 23, 2020 12:44 PM