U.S. financial markets bounced back on Friday after the worst loss since 1987, with the Dow Jones Industrial Average surging around 1,980 points, more than 9%, when trading closed.
The S&P 500 and Nasdaq each also jumped about 9%.
The stock market surged at the opening bell, but by midday, gains had retreated slightly, with the Dow up around 2.5% and the S&P 500 and Nasdaq each rising about 2.5% and 2.2%, respectively.
On Thursday, the Dow Jones Industrial Average lost more than 2,350 points, almost 10%, a day after falling 1,464 points, or 5.86%, as investor anxiety pushed the index into a bear market for the first time since the 2008 financial crisis. Thursday’s losses were the worst since 1987.
As markets reeled this week, the Federal Reserve announced a $1.5 trillion plan to help stabilize the financial system, but that appeared to have little effect on Thursday.
“These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak,” the Federal Reserve Bank of New York said in a statement Thursday.
Greg McBride, chief financial analyst at Bankrate, told ABC News earlier in the week that “the coronavirus pandemic has taken the stock market into bear market territory, and further declines are in the offing as the U.S. effectively hits the ‘pause’ button on the economy in an effort to curtail spread of the virus.”
“Yes, there will be economic disruption, and an all-but-certain recession,” he said.