×

Stocks Rebound a Day After Historic Market Meltdown Over Coronavirus Fears

media stocks - wall-street
Shutterstock

UPDATED: U.S. equities markets bounced back Friday with major indices notching solid gains, capping the most volatile week for stocks in decades. The rebound came a day after a rout that saw the worst declines for stocks since the Black Monday meltdown in October 1987.

The Dow Jones Industrial Average closed up 1,985 points, a 9.4% increase, to 23,185.62. The S&P 500 climbed 9.3% and the Nasdaq was up 9.35% for the day, a reversal from Thursday’s panicky sell off.

Stocks got a lift late in the day after the White House held a press conference starting at 3:30 p.m. ET, at which Donald Trump declared an national emergency and said the U.S. has committed to $50 billion in funding to respond to the coronavirus pandemic.

However, Friday’s uptick in the markets nowhere near made up for the record-setting losses sustained in the past few days, with the Dow ending down 10.4% for the week. The jolt of coronavirus-related shutdowns and cancellations is seen as pushing the U.S. economy into what economists believe is an overdue recession.

Disney closed up 11.7%, to $102.52 per share, recovering ground from its 13% drop Thursday. The company risks a sharp downturn in attendance at its many theme parks and resorts — all of which the company has now closed through the end of March because of the COVID-19 threat.

Other media stocks that finished Friday on an upswing were AT&T (+10%), Comcast (+12.6%), Lionsgate (+14.6%) and AMC Networks (+10.2%). Netflix, after falling into negative territory in midday trading, closed up 6.7%; Discovery ended the day up 2.7%. Sitting out Friday’s rally was Fox Corp., which closed down 0.3%.

Tech stocks gaining in Friday’s bounce included Apple (+12%), Facebook (+10.2%), Alphabet (+9.4%), Amazon (+6.5%), Twitter (+9.4%) and Snap (+8.9%).