The main average US stock exchanges won their fourth weekly session in five weeks. The Dow and the S&P 500 advanced at least 1% last week while the Nasdaq Composite advanced more than 3%.
News from the Federal Reserve for the purchase of corporate bonds with a spike record in US retail sales improved investor sentiment on Wall Street last. Expectations for an economic recovery also pushed up share prices.
However, the number of new confirmed cases of coronavirus cases continues to increase, which raises questions about the recovery.
“The areas of concern that weighed on Friday afternoon stocks were heightened over the weekend,” Adam Crisafulli of Connaissance Vitale wrote in a note. “Governments should reopen, but the real engine of growth will be normalization behavior and that is very likely to be caused by the constant negative coronavirus news feed. ”
In the United States, more than 30,000 additional coronavirus cases occurred on Friday, the highest number of day-confirmed cases since May 1, data compiled by Johns Hopkins University showed. Nevada, Florida, California and Arizona have also reported that the day record infections.
The recent light coronavirus is rising in some states of Apple LEDs to close some of its stores. Meanwhile, a trade group said cruise lines voluntarily suspended all travel until September. 15.
“There is a war between bulls and bears, with each grabbing at every little data point to support their opposing arguments,” said Vito Racanelli, market intelligence, analyst at Fundstrat Global Advisors, in a note. .
“I think maybe the market has gone past straight recovery, as investors realized coronavirus (COVID-19) is not an endangered world,” Racanelli said. “But the data remains mixed and COVID-19 the fear remains strong, and that is understandable. ”
The S&P 500 pulled more than 41% higher, as it reached an intraday low on March 23. For the quarter, the broader index market was up almost 20%.
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CNBC Michael Bloom contributed to this report.