Stocks rallied Friday, despite a historic low in the nation’s labor force participation rate as positive news about the economic reopening and revival overshadowed unemployment numbers. (fox10phoenix.com)
The Dow Jones Industrial Average gained 330 points, or 1.38 percent, in the opening minutes of trading while the S&P 500 and the Nasdaq Composite rose 1.12 percent and 0.82 percent, respectively.
The U.S. economy lost 20.5 million jobs in April, according to the Bureau of Labor Statistics, as non-essential businesses at least temporarily closed their doors to help slow the spread of COVID-19. At 14.7 percent, the unemployment rate was the highest since the Great Depression.
Some of those workers may soon be back on the job, however. At least 10 U.S. states on Friday are taking steps to reopen their economies, with California allowing retail stores to unlock their doors and Texas letting barbershops and salons to get back to work.
Looking at stocks, Ford Motor Company plans to begin a phased production and operations restart in North America on May 18.
The Dow’s jump signals that investors believe the worst of the coronavirus economy is behind us.