US Market closes higher in volatile trade

The US equity market finished volatile session higher on Thursday, 14 May 2020, snapping a two-sessions losing streak, led by a resurgence for some of the recent beaten-down stocks. However, market gains capped amid weak economic data and as of warning from the U.S. Federal Reserve's chairman for an extended period of weak economic growth. At closing bell, the Dow Jones Industrial Average rebounded 377.37 points, or 1.62%, to 23,625.34. The S&P 500 - a gauge of US retirement and education savings accounts - added 32.50 points, or 1.15%, to 2,852.50. The tech-heavy Nasdaq Composite Index rose 80.55 points, or 0.91%, to 8,943.72.

Stocks showed a substantial turnaround over the course of the trading day on Thursday after moving sharply lower early in the session as investors rethink bets that the reopening of economies around the world will allow for a relatively quick return of growth. Adding to the positive sentiment, New York Governor Andrew Cuomo expanded the state's phased reopening to five regions. The regions in upstate and central New York can resume manufacturing, construction and agricultural operations as well curbside pickup at retail stores beginning on Friday.

 

However, market gains capped as comments from top U.S. infectious disease expert Anthony Fauci earlier this week and warning about the premature lifting of lockdowns that could lead to additional outbreaks of the deadly novel coronavirus.

U.S. President Donald Trump on Thursday said he was disappointed with China over its failure to contain the coronavirus, and that the pandemic cast a pall over his U.S.-China trade deal. His comments stoked concerns about renewed U.S.-China trade tensions.

ECONOMIC NEWS: Labor Department report said initial jobless claims fell to 2.981 million, a decrease of 195,000 from the previous week's revised level of 3.176 million and marked the sixth straight weekly drop.

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