US stocks posted tentative gains Thursday as strong economic data helped Wall Street recover from its coronavirus-fueled selloff.
The Dow Jones industrial average climbed as much as 89.19 points, or 0.3 percent, to 26,609.14 in choppy early trading after the feds revealed the nation’s gross domestic product rebounded by a record 7.4 percent in the third quarter. But the blue-chip index was down 0.1 percent at 26,482.50 as of 10:16 a.m.
The benchmark S&P 500 rose as much as 0.7 percent after tumbling 3.5 percent on Wednesday amid fears about surging COVID-19 infections leading to new lockdowns. And the tech-heavy Nasdaq soared as much as about 1.2 percent ahead of earnings reports from tech giants including Apple, Amazon and Facebook.
“Investors should buckle up as the stock market roller coaster ride is far from over,” said Milan Cutkovic, senior market analyst at Axi. “Almost every sell-off quickly attracted bargain hunters, but this time, even the bravest investors are having second thoughts.”
The Dow’s losses earlier in the week put the 30-stock average on pace for its worst week since March as coronavirus cases and hospitalizations approached a third peak in the US.
The stronger-than-expected GDP report appeared to make up for investors’ fears about the US following countries such as France and Germany in imposing new restrictions to control the deadly virus. Biotech firm Moderna also said Thursday that it’s “actively preparing” to launch its COVID-19 vaccine, which is in late-stage clinical trials.
But the market is expected to stay volatile with the pandemic raging and the Nov. 3 presidential election less than a week away. Economic concerns also remain with unemployment elevated and GDP still below its pre-pandemic level.