FOX Business’s Edward Lawrence says the Federal Reserve will suspend share buybacks for banks and limit dividends that banks can pay in the third quarter to the second quarter.
US equity futures point to a lower open market by the end of the week.
The major futures indices suggest a 0.5 percent loss when the Wall Street session begins on Friday.
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Wall Street closed higher after the Federal Reserve and other regulators announced they will loosen rules that limit banks’ ability to invest in hedge funds and some other areas.
The change could help shore up small banks’ profits after central banks cut interest rates to near zero in response to the coronavirus pandemic.
The benchmark S&P 500 index was up 1.1 percent, the Dow Jones Industrial Average rose 1.2 percent and the Nasdaq, which hit a record high earlier this week, gained 1.1 percent.
| Heart | Security | Latest | Change | Change% |
|---|---|---|---|---|
| Me: DJI | DOW JONES AVERAGES | 25,745.6 | +299.66 | + 1.18% |
| SP500 | S&P 500 | 3,083.76 | +33.43 | + 1.10% |
| I: COMP | NASDAQ COMPOSITE INDEX | 10017.002548 | +107.84 | + 1.09% |
Asian equity markets followed Wall Street higher on Friday.
The Nikkei in Tokyo rose 1.1 percent, the Hong Kong Hang Seng lost 0.9 percent. The markets in China were closed for holidays.
In Europe, London’s FTSE rose 1.1 percent, Germany’s DAX added 0.6 percent, and France’s CAC gained 0.9 percent.
The US economy contracted 5 percent in the first quarter of the year, the Commerce Department reported Thursday. Forecasters expect a worse decline during the quarter ending next week.
Investors in the United States have been encouraged by official measures to lift anti-virus measures and allow companies to reopen. But some states have reinstated curbs after the resurgence of new infections.
Hospitalizations and cases have reached new highs in California, Florida and Texas, which is suspending their aggressive reopening.
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In the energy markets, US benchmark crude rose 52 cents to $ 39.24 a barrel. It closed Thursday at $ 38.72 a barrel. Brent crude, the standard price for international oils, added 57 cents at $ 41.62 a barrel in London. It closed at $ 41.05 the previous session.
The Associated Press contributed to this story.
