Search ForexCrunch
  • S&P 500 Financials Index adds 4.5% to lead the rally.
  • CBOE Volatility Index drops more than 3% on Friday.
  • Energy shares rise sharply despite ongoing crude oil selloff.

Wall Street’s main indexes started the last day of the week decisively higher as the risk rally picked up momentum after US Pres. Trump unveiled the guideline to reopen the economy. Moreover, reports pointing out to patients responding positively to remdesivir treatment revived hopes of a return to normality.

Risk-on flows dominate financial markets

As of writing, the Dow Jones Industrial Average was up 2.2% on the day while the S&P 500 and the Nasdaq Composite were adding 2% and 0.65%, respectively. Reflecting the upbeat mood, the CBOE Volatility Index, Wall Street’s fear gauge, was down 3.1% on a daily basis.

All the major S&P 500 sectors post gains in the early trade on Friday with the Energy Index and the Financials Index both rising more than 4% to lead the rally. On the other hand, the Healthcare Index is the worst-performing sector despite advancing 0.9% on the day.