U.S. stocks rebounded from the biggest rout in 12 weeks as dip-buyers emerged for companies that bore the brunt of Thursday’s selling. The dollar rose.
Real-estate, financial and energy companies led gains in the S&P 500. Cruise operators and airlines that were among the hardest-hit during the rout soared. Earlier Friday, the gauge fell as the World Health Organization said the risk of a second wave of coronavirus is present for any country exiting lockdowns. States and cities might have to resume shutdowns if cases surge dramatically, top officials at the U.S. Centers for Disease Control and Prevention said.
A rally of more than 40 per centthat carried equity benchmarks well off their March lows stumbled this week on pessimism about the pace of recovery following months of lockdown. Arizona and Oklahoma were among U.S. states to report record one-day increases in new coronavirus cases, a month after easing restrictions. Florida had the biggest daily jump since May 1. White House economic adviser Larry Kudlow said a new wave of cases hasn’t appeared.
“I don’t think that much has really changed. It’s just investors are so trained to buy that dip, they are riding that now,” said Shahnawaz Malik, senior investment advisor at Cornerstone Capital. “We’re going to continue to see these bouts of volatility until we have a vaccine” for the coronavirus.