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Stocks Rebound as Dip-Buying Offsets Virus Concern: Markets Wrap

Rita Nazareth and Claire Ballentine
Stocks Rebound as Dip-Buying Offsets Virus Concern: Markets Wrap

(Bloomberg) -- 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. Treasuries fell, while 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.

While U.S. stocks recovered Friday, all three major equity gauges fell for the week on concern over 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.

These are some of the main moves in markets:


The S&P 500 advanced 1.3% as of 4 p.m. New York time.The Stoxx Europe 600 Index advanced 0.3%.The MSCI Asia Pacific Index decreased 1.2%.


The Bloomberg Dollar Spot Index advanced 0.1%.The euro decreased 0.4% to $1.1256.The Japanese yen weakened 0.5% to 107.36 per dollar.


The yield on 10-year Treasuries gained four basis points to 0.71%.Germany’s 10-year yield decreased three basis points to -0.44%.Britain’s 10-year yield advanced one basis point to 0.208%.


The Bloomberg Commodity Index sank 0.6%.West Texas Intermediate crude advanced 0.1% to $36.38 a barrel.

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