US equities posted solid reap during the holiday-shortened week, as investors weighed the possibility of normalizing economic activities.
For the week ending Friday, the Dow advanced 3.8 per cent, the S&P 500 gained 3 percent, and the Nasdaq was 1.8 per cent up. US markets were closed Monday in observance of Memorial Day, Xinhua news agency reported as on Saturday.
“The bottom line is that the worst of the economic crisis may be over – which may help explain the ongoing stock market rally – but no one can know for sure at what pace the economy is likely to recover from here,” analysts at Zacks Investment Management stated in a note on Saturday.
All the US states have eased COVID-19 restrictions to varying degrees, despite fears of a re-surge in virus cases.
Wall Street also paid close attention to the latest statements from U.S. Federal Reserve Chairman Jerome Powell.At a virtual event held by Princeton University on Friday, Powell said he is concerned about a potential second wave of outbreak. “I think a second wave could be what would really undermine public confidence and might make for a significantly longer recovery, weaker recovery.” he stated.