President Donald Trump's national emergency statement, which started just half an hour before the market closed, pushed up stocks on Friday, at least temporarily easing stocks that were throttled this week due to fears of the COVID-19 pandemic.
Trump outlined various measures under the National Emergency Declaration, including the release of federal resources that states can access if they respond to the novel outbreak of the corona virus. COVID-19 is a disease caused by a new virus belonging to the coronavirus family and closely related to the SARS and MERS viruses that have caused outbreaks in the past. The spread of the disease has caused governments and corporations to cancel tech, business and automotive events around the world.
All major indices and bitcoin had risen earlier today to speculation that the Trump administration would declare a national emergency. The Dow Jones Industrial Average rose 1,200 earlier in the day, but fell about 500 points in the afternoon.
The market has been roaring back in the last few moments when Trump, along with other health officials and CEOs of private companies, including Target, closed. Walgreens, Walmart and CVS outlined plans as part of the emergency statement.
Despite the upswing, equity markets have had one of their worst weeks in recent history. Stocks had the worst day in over 30 years yesterday.
In the end, the markets were on the upswing:
- The Dow Jones rose 1,980 or 9.4% to 23,182 at the close
- At the close, the Nasdaq rose 673 points, or 9.35%, to 7,874.23
- At the close, the S&P 500 rose 230 points or 9.2% to 2,711.02
For companies mentioned during the President's speech, stocks rose in line with key indices and in some cases outperformed them.
During his speech in the Rose Garden in the White House, Trump praised the work of companies like Roche that have developed a diagnostic tool that can help identify infections faster. Roche Shares rose 13% to trade at $ 40.30.
Shares of alphabet, Google’s parent company, also rose more than 9% to close at $ 1,214.27. Trump announced during his speech that Google will launch a new pre-screening website online that everyone can access to check their symptoms and be directed to test sites across the country.
Shares in Walmart, Aim, CVS and Walgreens were all higher. The companies are working with the federal government's plan to open transit testing centers for COVID-19. Walmart shares closed 9.66% higher at $ 114.10; Target stocks closed more than 9% higher at $ 101.02. and Walgreens rose 12.6% to close at $ 46.19.