(Bloomberg) — U.S. futures dropped after the first three-day rally in American equities since mid-February, and Asian stocks came off their highs Friday as investors assess whether the worst is over for the rout in risk assets.
The S&P 500 rose more than 6% Thursday after the U.S. Senate passed a $2 trillion fiscal package. Equity benchmarks were up about 2% in Tokyo, Hong Kong and Seoul, while early gains in Australia gave way to a modest retreat. The MSCI All Country World Index is on course for a 13% rise this week, following a crash that dragged stocks around the globe into bear markets. The dollar stabilized after retreating for three days.
Data are beginning to show the extent of the economic damage of the outbreak — U.S. jobless claims surged to a record 3.28 million last week as businesses shut down to help prevent its spread. While the reading exceeded estimates, U.S. government aid may help to cushion the impact on workers and businesses. Federal Reserve Chairman Jerome Powell also sought to assure the public that the central bank wouldn’t run out of crisis-fighting ammunition.
The speed of the rebound has caught some off guard. After falling into a bear market at the fastest rate ever, the S&P 500 just recorded its quickest three-day advance in nine decades. Equities are now in the process of forming a bottom, according to Dan Skelly, head of equity model portfolios at Morgan Stanley Wealth Management.
“While we do believe this will be possibly the sharpest recession in history, it may also be the shortest, so…