Federal Reserve releases stress test results
FOX Business’ Edward Lawrence says the Federal Reserve will suspend stock buybacks for banks and cap the dividends banks can give in the third quarter to the second quarter.
U.S. equity futures are pointing to a lower market open to end the week.
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The major futures indexes suggest a loss of 1 percent when Friday's Wall Street session begins.
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Wall Street closed higher after the Federal Reserve and other regulators announced they will ease rules that limit banks' ability to invest in hedge funds and some other areas.
The change could help to shore up slim bank profits after central banks cut interest rates to almost zero in response to the coronavirus pandemic.
The benchmark S&P 500 index rose 1.1 percent, the Dow Jones Industrial Average rose 1.2 percent and the Nasdaq, which hit an all-time high earlier this week, gained 1.1 percent.
|I:DJI||DOW JONES AVERAGES||25745.6||+299.66||+1.18%|
|I:COMP||NASDAQ COMPOSITE INDEX||10017.002548||+107.84||+1.09%|
Asian stock markets followed Wall Street higher on Friday.
The Nikkei in Tokyo rose 1.1 percent, Hong Kong's Hang Seng lost 0.9 percent Markets in China were closed for a holiday.
In Europe, London's FTSE rose 0.9 percent, Germany's DAX added 0.8 percent and France's CAC gained 0.9 percent.
The U.S. economy shrank by 5 percent in the first quarter of the year, the Commerce Department reported Thursday. Forecasters expect a worse decline during the quarter that ends next week.
Investors in the United States have been encouraged by official moves to lift anti-virus measures and allow businesses to reopen. But some states have reimposed curbs after a resurgence in new infections.
Hospitalizations and cases have hit new highs in California, Florida and Texas, which is suspending its aggressive reopening.
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In energy markets, benchmark U.S. crude rose 35 cents to $39.08 per barrel. It closed Thursday at $38.72 a barrel. Brent crude, the price standard for international oils, added 43 cents to $41.48 per barrel in London. It closed at $41.05 the previous session.
The Associated Press contributed to this story.
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