U.S. stock indexes ended sharply lower Friday, failing to get a lasting lift from approval by Congress of a $2 trillion economic stimulus package to counter the effects of the coronavirus pandemic, but equities booked double-digit weekly gains to take back a chunk of losses seen this month.
How are benchmarks performing?
The Dow Jones Industrial Average DJIA, -4.05% dropped 915.39 points, or 4.1%, to end at 21,636.78, while the S&P 500 index SPX, -3.36% fell 88.60 points, or 3.4%, to 2,541.47. The Nasdaq Composite Index COMP, -3.78% lost 295.16 points, or 3.8%, to finish at 7,502.38.
On Thursday, the Dow marked its best three-day gain since 1931, while it was the best such gain for the S&P since 1933. Despite Friday’s decline, the Dow booked a 12.8% weekly advance, its strongest since 1938, while the S&P 500 rose 10.3% for its biggest such jump since 2008. The Nasdaq’s 9.1% weekly rise was the biggest since March 2009.
Since their peaks, the Dow still stands 26.8% below its record high, the S&P 500 is down 25% from its Feb. 19 peak and the Nasdaq Composite Index COMP, -3.78% is off 23.6% from its all-time high.
What’s driving the market?
The week’s sharp stock-market rebound was attributed part to optimism over the U.S. fiscal stimulus plan in concert with aggressive monetary policy easing by the Federal Reserve and other major central banks. Analysts, however, warned that stocks could still see significant pressure