Wall Street rebounds after biggest pullback since March

(Reuters) – Wall Street’s main indexes jumped on Friday, recouping about half of the previous session’s sharp losses, 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

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 11%, 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 14% and 19% leading gains on the S&P 500 following sharp declines in the previous session.

“People are just taking a breather after the outright selling yesterday, like we saw back in the dark days of February and early March,” said Ryan Giannotto, director of research at GraniteShares ETFs in New York.

“There’s always going to be more headlines about coronavirus cases increasing, more tests increasing. That’s just something that markets, investors and companies are going to have to learn to deal with.”

On Thursday, the tech-heavy Nasdaq .IXIC ended about 5% below its record closing high and the S&P 500 .SPX tumbled nearly 6% 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 investors bets on a swift economic rebound.

The S&P 500 is now about 9% from its record high after being within 5% from that level earlier this week.

The CBOE volatility index eased about 5.33 points after jumping to its highest level since April 23.

At 10:11 a.m. ET, the Dow Jones Industrial Average .DJI was up 766.58 points, or 3.05%, at 25,894.75, the S&P 500 .SPX was up 74.60 points, or 2.48%, at 3,076.70. The Nasdaq Composite .IXIC was up 238.93 points, or 2.52%, at 9,731.65.

Photoshop maker Adobe Inc (ADBE.O) rose 2.3% after posting a better-than-expected quarterly profit, driven by strong demand for its cloud software.

“The technology sector has led the way so far this year and we think this can continue,” said Stuart Rumble, investment director at Fidelity Investments.

“Many companies and businesses are being forced to explore new ways to conduct their businesses online, ranging from remote working, video conferencing to online shopping and payments.”

Yoga apparel maker Lululemon Athletica Inc (LULU.O) fell 1.9% after posting lower-than-expected quarterly results due to coronavirus-induced store closures.

Advancing issues outnumbered decliners for a 14.99-to-1 ratio on the NYSE and a 11.73-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and no new low, while the Nasdaq recorded 14 new highs and no new low.

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