Stocks were set to fall more than 2% this week and the dollar was on track for its strongest week since April as concern over the economic effect of a second wave of virus-related lockdowns continued to weigh on investors’ risk appetite, Reuters reported.
But tech stocks led the way higher on Wall Street on Friday, as they have of late on days governed by worries over the economic recovery. The gains offset losses elsewhere, and an index of major stock markets globally was up on the day.
Other than COVID-19 angst, the week was dominated by speculation over the likelihood of another stimulus package to support the American economy.
“There’s evidence of a slowdown in the United States, which we think is temporary, but it would be reinforced if there is no additional fiscal package,” said Sebastien Galy, senior macro strategist at Nordea Asset Management.
Bets on more stimulus increased after squabbling U.S. political parties talked about another super-sized stimulus package, but the rise in the dollar and demand for safe-haven government bonds remained telling.
On Wall Street, the Dow Jones Industrial Average rose 265.95 points, or 0.99%, to 27,081.39, the S&P 500 gained 41.35 points, or 1.27%, to 3,287.94 and the Nasdaq Composite added 197.92 points, or 1.85%, to 10,870.19.
The S&P was on track for four consecutive weekly losses, the longest such streak in over a year.
The pan-European STOXX 600 index lost 0.10% and MSCI’s gauge of stocks across the globe gained 0.84%. The global index was down over 2% for the week.
Source: Saudi Press Agency