Wall Street rises after biggest pullback since March

(Reuters) – Wall Street’s main indexes rose on Friday, after a steep decline in the previous session, but were still on track for their worst week in nearly three months on fears of a rise in new coronavirus infections and economic worries.

Traders exit the 11 Wall St. door of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 11, 2020. REUTERS/Brendan McDermid

The indexes, however, were well off their session highs and the CBOE volatility index turned positive to hit its highest level since April 22.

The S&P 500 .SPX rose as much as about 3% earlier in the session.

On Thursday, the tech-heavy Nasdaq .IXIC ended about 5% below its record closing high and the S&P 500 .SPX tumbled nearly 6% in their worst day since mid-March, as the Federal Reserve’s indication to a long road to recovery and rising COVID-19 cases in the United States cast a pall over investor bets on a swift economic rebound.

The S&P 500 is now about 10.8% from its record high after being within 5% from that level earlier this week.

“Perhaps the markets have overestimated their fears about the reignition in number of cases,” said Todd Jablonski, chief investment officer at Principal Global Asset Allocation in Seattle.

“In the short term you could see some investors, particularly retail investors who have been moving into the equity space pretty aggressively over the last couple of weeks, take some profit.”

All the major S&P sectors rose with technology .SPLRCT and financials .SPSY providing the biggest boost to the benchmark index.

Boeing Co (BA.N) jumped 5.2%, as it looked to end the week 8% lower. United Airlines Holdings Inc (UAL.O), American Airlines Group Inc (AAL.O), Norwegian Cruise Line Holdings Ltd (NCLH.N) jumped between 11% and 12.5%, leading gains on the S&P 500 following sharp declines in the previous session.

At 11:32 a.m. ET, the Dow Jones Industrial Average .DJI was up 190.90 points, or 0.76%, at 25,319.07, the S&P 500 .SPX was up 15.50 points, or 0.52%, at 3,017.60. The Nasdaq Composite .IXIC was up 33.59 points, or 0.35%, at 9,526.32.

Photoshop maker Adobe Inc (ADBE.O) rose 3.1% after posting a better-than-expected quarterly profit, driven by strong demand for its cloud software.

Yoga apparel maker Lululemon Athletica Inc (LULU.O) fell 5.2% after posting lower-than-expected quarterly results following coronavirus-induced store closures.

Advancing issues outnumbered decliners for a 3.01-to-1 ratio on the NYSE and a 2.21-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and no new low, while the Nasdaq recorded 15 new highs and four new lows.

Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty, Uttaresh.V and Shounak Dasgupta

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