Stocks Rally, Dow Up Almost 300 Points Despite Record Job Losses

TOPLINE

The stock market rose on Friday, despite one of the worst monthly jobs reports in history, as investors continued to look toward a reopening of the economy and bet that the worst of the economic impact from coronavirus has passed.

KEY FACTS

Surprising fact

Just two months ago, the unemployment rate was sitting at a 50-year low of 3.5%, after the United States had been adding jobs every month for nearly a decade.

Crucial quote

“In one month, we nearly wiped out all of the jobs created the previous 10 years, which puts in perspective just how devastating this pandemic has been,” according to Ryan Detrick, senior market strategist for LPL Financial. “Here’s the catch. As our country starts to open back up, many of those jobs will come back, potentially quickly.”

Key background

Stocks have rallied aggressively off their March lows as Wall Street becomes increasingly optimistic about a reopening of the economy. Stocks have moved higher in recent weeks as several states—including Georgia, Florida, Texas and California—begin to reopen businesses and lift coronavirus lockdowns. The S&P 500 has bounced back more than 30% from its low in late March, now just 15% off a record high. The Nasdaq
NDAQ
is more than 35% off its lows and on Thursday actually moved into positive territory for the year.

Further reading

April Was The Worst Month For Jobs Since The Great Depression. Here’s What The Numbers Tell Us About Recovery. (Forbes)

Stocks Lose Steam After Fed Vice Chairman Says Economy Needs More Support (Forbes)

Stocks Had Their Best Month In 33 Years, But Here’s Why Experts Are Skeptical (Forbes)

The U.S. Economy Will Beat Coronavirus, Buffett Says: ‘Never Bet Against America’ (Forbes)

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