Stocks posted solid gains Monday, rebounding from Friday's selloff, after strong housing data offset news that coronavirus cases surpassed 10 million people globally.
The Dow Jones Industrial Average finished up 580 points, or 2.32%, to 25,595, the S&P 500 gained 1.47% and the Nasdaq was up 1.2%.
On Friday, the Dow slumped 730 points, or 2.84%, the S&P 500 dropped 2.42% and the Nasdaq Composite sank 2.59% as worries grew that portions of the economy could be shuttered amid a resurgence of the virus.
Even with a surge in infections, there are signs that both the U.S. and global economies have been modestly improving.
Pending home sales in May jumped 44.3% from April, according to the National Association of Realtors, marking the largest one-month jump since the survey began in 2001. Very low mortgage rates were spurring homebuyers.
“The outlook has significantly improved, as new home sales are expected to be higher this year than last, and annual existing-home sales are now projected to be down by less than 10% - even after missing the spring buying season due to the pandemic lockdown,” said Lawrence Yun, NAR’s chief economist.
The number of confirmed global cases of the coronavirus has risen to 10,199,798,816, according to the Johns Hopkins Center for Systems Science and Engineering, and deaths increased to 502,947.
The U.S. has 2,564,163 cases of the coronavirus, the most in the world, according to Johns Hopkins. Deaths in the U.S. have risen to 125,928, also the most in the world.
The U.S. had 42,000 cases Saturday, marking the second straight day that the daily total was above 40,000.
Gilead Sciences (GILD) - Get Gilead Sciences, Inc. (GILD) Report on Monday said it will price its covid-19-fighting drug remdesivir at $2,340 for a five-day treatment, well below what it says would be market prices for the drug.
Boeing (BA) - Get Boeing Company Report, the Dow's biggest gainer, finished up 14% to $194.42 Monday after the planemaker received approval from the Federal Aviation Administration to begin test flights of its grounded 737 MAX aircraft as early as this week.
Facebook (FB) - Get Facebook, Inc. Class A Report finished up 2.1% Monday even as Starbucks (SBUX) - Get Starbucks Corporation Report, the world's largest coffee chain, joined a list of more than 150 companies that plan to freeze advertising spending on the social media platform.