Afternoon rally lifts stocks, but fails to avoid fourth straight weekly loss

Andrew Cummings
September 26, 2020

Shares of tech mega-caps Apple Inc, Microsoft Corp and Inc led the way, followed by Nvidia Corp and Facebook Inc, rising at least 2.1%.

On Wall Street, the S&P 500 rose 0.3% to 3,246.59 after swinging between a loss of 0.9% and a gain of 1.3%.

Supporting sentiment on the day, a top USA lawmaker said Democrats in the House of Representatives were working on a $2.2 trillion coronavirus stimulus package that could be voted on next week.

Wall Street started the day lower after the jobless claims data. The Nasdaq closed higher for the week after falling the previous three, and is now up 22% for the year.

For the week, the Dow unofficially fell 1.74%, the S&P 500 slid 0.63%, and the Nasdaq gained 1.1%. Growth-oriented shares .IVX gained at a rate nearly twice that of value stocks.

The S&P industrials sector .SPLRCI added 0.9% as data showed new orders for key USA -made capital goods jumped in August, while a 1.1% slide in energy stocks .SPNY put them on course for one of their worst weeks since the coronavirus-driven crash in March.

"The market has been under pressure for a while and is just catching a bit of a bargain-hunting Friday", said Art Hogan, chief market strategist at National Securities.

At 10:07 a.m. ET, the Dow Jones Industrial Average was down 39.09 points, or 0.15 per cent, at 26,776.35, and the S&P 500 was down 1.50 points, or 0.05 per cent, at 3,245.09.

Global shares and Wall Street futures turned lower on Friday, meaning USA stocks could fall for a fourth consecutive week as investors worry about the economic impact of a resurgence in virus cases and political divisions in the US.

The Nasdaq Composite gained 8.19 points or 0.08 per cent to 10,680.46 at the opening bell.

Volume on US exchanges was 10.43 billion shares, up from 10.04 billion shares on Wednesday.

Accenture Plc fell 7.04% after the IT consulting firm forecast current-quarter revenue below expectations, while US -listed shares of BlackBerry Ltd initially jumped after the Canadian security software firm posted a surprise rise in quarterly revenue, but finished the day lower.

The Nasdaq rose 120.28 points, or 1.1%. The VIX volatility index moved lower, as riskier assets were able to move higher.

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