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Stocks rally as investors shake off worries about infections and the economy

Financial Markets Wall Street
Posted at 4:47 PM, Nov 13, 2020

Wall Street rallied into the close on Friday, finishing the day sharply higher as investors shrugged off worries over the economic recovery and the resurgence in COVID-19 cases.

The Dow finished up 1.4%, or 400 points. Cisco, which reported earnings late Thursday, was the best performer in the Dow.

The broader S&P 500 climbed 1.4%, and the Nasdaq Composite closed 1% higher.

Looking at the week in total, the Dow and the S&P logged gains while the Nasdaq recorded a loss.

It was a turbulent week for stocks, which rallied Monday after Joe Biden was projected to win the election and drug maker Pfizer announced trial data that showed its coronavirus vaccine is 90% effective.

But stocks retreated as some states reimposed rules to limit the spread of the virus amid rising infection numbers. Worries that the trend could put a damper on the economic recovery weighed on the optimism midweek.

Making matters worse, Federal Reserve Chairman Jerome Powell had some sobering words for investors on Thursday, when he said the resurgence was a key risk to the economy. Powell also reiterated that more stimulus was likely necessary to boost the economy.

But on Friday, investors appeared to set those worries aside again.

The Trump administration, meanwhile, dropped its legal challenge to the election result in Arizona Friday.

CNN also projected Friday that Biden will win Georgia, making him the first Democrat to win the state since Bill Clinton in 1992. President Donald Trump has yet to concede the race.

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