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The US economy is expected to contract by 25.5% in the second quarter of the year, the Federal Reserve Bank of New York’s latest Nowcasting Report showed on Friday. 

“News from this week’s data releases increased the nowcast for 2020:Q2 by 10 percentage points and increased the nowcast for 2020:Q3 by 24.5 percentage points,” the NY Fed said in its publication. “Positive surprises from labor, survey, and international trade data drove most of the increase.”

Market reaction

Boosted by the upbeat Nonfarm Payrolls report, Wall Street’s main indexes are gaining between 2% and 3.9% on Friday.