The major averages wiped out earlier losses and closed higher on Friday as the biggest tech companies and market leaders, Amazon, Apple and Facebook soared after posting stellar quarterly results.The Dow Jones Industrial Average finished up 114 points after dropping 286 points at its low of the day. The S&P 500 climbed 0.7%, while the Nasdaq Composite gained 1.4%, led by a 10% jump in Apple.
Emergency unemployment benefits were set to expire today as Congress and the White House are still seem far apart on an agreement. White House Chief of staff Mark Meadows said Democratic leaders have rejected four offers regarding the coronavirus relief bill.
Outside the tech space, Dow-component Chevron fell more than 4% after the oil giant reported an $8.3 billion loss in the second quarter as the pandemic for reduced demand. Stocks linked to an economic recovery like banks and retailers were lower. JPMorgan and Home Depot both closed in the red. Caterpillar dropped 2% following earnings.
On the economic front, consumer sentiment deteriorated this month amid a resurgence in new coronavirus cases. University of Michigan's consumer sentiment index came in at 72.5 for July, down from June's 78.1 and below Dow Jones estimates of 72.7.
Investors flock to safe-haven assets amid the uncertainty about the economic recovery. Gold futures spiked to an all-time high of $2,005.4 an ounce on Friday, crossing the $2,000 mark for the first time.
U.S. Treasuries finished the session little changed. The 2-yr yield declined one basis point to 0.10%, and the 10-yr yield was flat at 0.54%. The U.S. Dollar Index rebounded 0.5% to 93.44. WTI crude futures increased 0.4%, or $0.16, to $40.13/bbl.
For the month of July, the major averages posted solid gains for their fourth straight positive month. The S&P 500 gained 5.5% while the Dow and the Nasdaq Composite rose 2.3% and 6.8%, respectively.
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