This evening President Trump signed the largest economic relief package in US history, but stocks still finished Friday about 3% lower as traders continue to limit risk heading into the weekend. Despite today’s losses, the S&P 500 still rose over 10% this week while the Dow Jones Industrial Average rose over 12% for its best weekly return since 1938. As long as the coronavirus infection curve continues to steepen we expect skepticism of a market bottom to remain, but we were encouraged by how low trading volumes were today as the Nasdaq saw its lowest volume since February 21 and the New York Stock Exchange is likely to have seen its lightest volume since February 24 (official figure hasn’t been finalized yet). Heading into next week, investors will be bracing for Friday’s employment situation report for March, but we will be closely watching for more signs that trading volume, particularly on the downside, is declining as well as a continuation of the wider market breadth (more advancing stocks than declining) that hallmarked this week’s rally.
Ian Browning | Director, Investment Strategies & Shareholder
Peter E. Simmons | President & CEO