Stocks traded higher Friday as Wall Street rebounded from the previous session’s declines that came amid soaring coronavirus cases.
The Dow Jones Industrial Average was up 287 points, or 0.99%, to 29,367, the S&P 500 rose 0.91% and the Nasdaq gained 0.6%.
Cisco Systems (CSCO) – Get Report posted stronger-than-expected fiscal first-quarter earnings as services and security revenue offset a slump in sales for network equipment amid the global coronavirus pandemic.
The stock gained 6.74% to $41.28 in trading Friday.
Stocks finished lower Thursday as a resurgence of the coronavirus worried Wall Street that new restrictions aimed at curbing the pandemic will lead to a halt in any economic recovery.
The U.S. set a record Thursday of more than 160,000 new coronavirus cases, while hospitalizations for Covid-19 of more than 67,000 also set a national record.
In California, coronavirus cases surpassed 1 million, according to Johns Hopkins University. New York City Mayor Bill de Blasio could shut down the city’s school system, the nation’s largest, by Thanksgiving or earlier. Chicago Mayor Lori Lightfoot issued a 30-day stay-at-home advisory, asking the city’s residents to cancel Thanksgiving plans and stay at home.
Federal Reserve Chairman Jerome Powell warned at a European Central Bank forum that even if a vaccine is developed by the end of the year there will be serious economic challenges ahead.
Powell said the “the main risk we see” to an economic recovery “is clearly the further spread of the disease here in the United States.”
“We’ve got new cases at a record level. We’ve seen a number of states begin to reimpose limited activity restrictions, and people may lose confidence that it’s safe to go out,” Powell said. “We’ve said from the beginning that the economy will not fully recover until people are confident that it’s safe to resume activities involving crowds and people.”
He also called for further economic support from Congress but progress there has stalled and reports said Thursday that the Trump administration has walked away from talks on a relief package and will leave it up to Congress to revive negotiations with House Speaker Nancy Pelosi.