In the beginning of trading on Thursday, Dow Jones index plunged to negative territory. The index lost roughly 1% during morning, but began to surge after 10 a.m. The closing value of DJIA index grew over 26,000 points, which represents 3,5% intraday price increase. Similarly, value of S&P 500 index increased, and Nasdaq index added up almost 1%.
Despite of negative news from American labor market, local markets have strengthened. Till 9th May, more 3 million Americans have filed for unemployment benefits, and the overall amount from the beginning of coronavirus pandemic has exceeded 36 million. The rate of U.S. unemployment mounted up to 15%, which is the highest value since the Great Depression of the 1930s.
The stock markets rally was driven by financial sector. Banks caught up with loss from previous days, when they experienced sale’s mood. Investors worry about implementing negative interest rates, and that would be damaging for banking sector.