· Nasdaq rallies more than 1%, closes positive for 2020
The Nasdaq Composite rose for a fourth straight day on Thursday, clawing back its steep losses for the year, as tech shares added to their recent strong gains while investors mounted bets on the U.S. economy reopening soon.
The tech-heavy index closed 1.4% higher at 8,979.66 as Apple shares gained 1%. Facebook, Amazon and Alphabet rose as well. For the year, it closed up nearly 0.1%.
Thursday marked the first time one of the major averages was up year to date since the coronavirus pandemic led to the closure of nonessential businesses, sparking massive layoffs and a historic market sell-off.
The Nasdaq’s rebound was led in large part by sharp gains in big tech stocks such as Facebook, Amazon, Apple, Netflix and Alphabet. Those stocks are all up at least 15.8% this quarter and are positive for 2020. Microsoft, another major tech stock, has rallied more than 16% this year and for the quarter.
The Dow Jones Industrial Average also closed higher on Thursday by 211.25 points, or 0.9%, at 23,875.89. The S&P 500 gained 1.2% to close at 2,881.19. Still, both averages were down more than 10% for 2020.
States such as California and New York have unveiled plans to gradually reopen their economies. Other states, including Georgia, have already let some nonessential businesses resume operations.
“My worry is that, we get to the end of the month, more states start to go back to work, and demand is not to the level that the market would expect,” said JJ Kinahan, chief market strategist at TD Ameritrade. At the same time, “when you think about this rally, where else are you going to put your money?”
· US stock futures rise slightly after Nasdaq Composite claws back 2020 losses, jobs report ahead
U.S. stock futures rose slightly Thursday night after more gains in tech led to the Nasdaq Composite erasing all of its losses for 2020.
Dow Jones Industrial Average futures were up by 61 points, or about 0.25%. S&P 500 and Nasdaq 100 futures traded higher by 0.3% and 0.2%, respectively.
The tech-heavy Nasdaq rose 1.4% during the cash session, finishing up nearly 0.1% year to date. Gains from Facebook, Amazon Alphabet and Apple helped lift the index back into positive territory for 2020. At one point, the Nasdaq was down more than 25% year to date.
· Asia stocks trade higher as Nasdaq turns positive for 2020
Stocks in Asia were traded higher Friday morning after the Nasdaq Composite recovered from its losses for the year overnight.
Japanese stocks led gains among the region’s major markets, with the Nikkei 225 jumping 1.29% in early trade as shares of FamilyMart surged more than 3%. The Topix index also rose 1.19%.
South Korea’s Kospi advanced 1% while the Kosdaq index was 0.91% higher. Shares in Australia also edged higher, with the S&P/ASX 200 rising 0.66%.
Overall, the MSCI Asia ex-Japan index traded 0.41% higher.
Meanwhile, investors await the release of the Reserve Bank of Australia’s statement on monetary policy, set to be around 9:30 a.m. HK/SIN.
Reference: CNBC, Reuters
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