US stocks rose on Friday and also posted gains for the week, boosted by a surge in Boeing shares, President Donald Trump's plan to reopen the coronavirus-battered economy and hopes of a potential drug by Gilead to treat Covid-19.
The Nasdaq added 6.1 per cent for the week and registered its biggest two-week percentage gain since 2001.
Boeing shares soared nearly 15 per cent on plans to restart commercial jet production in Washington state after halting operations last month due to the Covid-19 pandemic.
Gilead Sciences surged almost 10 per cent following a report that patients with severe symptoms of Covid-19, the respiratory disease caused by the coronavirus, had responded positively to its experimental drug remdesivir. The report cited partial data from a University of Chicago hospital, one 152 locations participating in the trial.
With no treatments or vaccines currently approved for the coronavirus, the news helped lift global equity markets. But Gilead said the totality of the data from the trial needed to be analysed, and it expected to report results from a study testing the drug in severe Covid-19 patients at the end of April.
"If you can ultimately get a powerful treatment in lieu of a vaccine in the next couple of months, that would be good for cyclical stocks, anything economically sensitive," said RJ Grant, head of trading at Keefe, Bruyette & Woods in New York. "If we can get some sort of back-to-normal in some way that the economy could start to function, the banks are going to rip," he added.
The S&P 500 is up nearly 30 per cent from its March trough following a raft of global stimulus and hopes that the spread of the virus was nearing a peak in the US.
However, the S&P remains about 15 per cent off its all-time high, and strategists have warned of a deep economic slump from the halt in business activity and layoffs.
Some US states are expected to begin announcing timetables for lifting restrictions. On Thursday, Mr Trump unveiled guidelines for a staggered, three-stage process by states to lift restrictions on business and social life to curb the pandemic.
The Dow Jones Industrial Average rose 704.81 points, or 2.99 per cent, to 24,242.49, the S&P 500 gained 75.01 points, or 2.68 per cent, to 2,874.56 and the Nasdaq Composite added 117.78 points, or 1.38 per cent, to 8,650.14.
For the week, the Dow added 2.2 per cent and the S&P 500 rose 3 per cent.
The reopening guidelines "provide some hope and optimism for folks and the market and the whole economy. It's a start", said Gary Bradshaw, portfolio manager at Hodges Capital Management in Dallas.
Mr Bradshaw, who owns Boeing shares, said the planemaker's news was positive as well. "I certainly haven't given up on it," he said.
Bank stocks recovered after four straight days of losses triggered by lenders' reporting several billion dollars in reserves to cover potential loan defaults. The S&P 500 financial index ended up 5.6 per cent, while the S&P energy index jumped 10.4 per cent.
Apple fell 1.4 per cent as Goldman Sachs downgraded the stock on expectations of a 36 per cent drop in iPhone shipments during the company's fiscal third quarter due to coronavirus-related lockdowns.
Volume on US exchanges was 12.75 billion shares, compared to the 13.72 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 5.18-to-1 ratio; on Nasdaq, a 3.88-to-1 ratio favoured advancers.
The S&P 500 posted 10 new 52-week highs and no new lows; the Nasdaq Composite recorded 31 new highs and 13 new lows.
Community Shield info
Where, when and at what time Wembley Stadium in London on Sunday at 5pm (UAE time)
Arsenal line up (3-4-2-1) Petr Cech; Rob Holding, Per Mertesacker, Nacho Monreal; Hector Bellerin, Mohamed Elneny, Granit Xhaka, Alex Oxlade-Chamberlain; Alex Iwobi, Danny Welbeck; Alexandre Lacazette
Arsenal manager Arsene Wenger
Chelsea line up (3-4-2-1) Thibaut Courtois; Cesar Azpilicueta, David Luiz, Gary Cahill; Victor Moses, Cesc Fabregas, N'Golo Kante, Marcos Alonso; Willian, Pedro; Michy Batshuayi
Chelsea manager Antonio Conte
Referee Bobby Madley
Family reunited
Nazanin Zaghari-Ratcliffe was born and raised in Tehran and studied English literature before working as a translator in the relief effort for the Japanese International Co-operation Agency in 2003.
She moved to the International Federation of Red Cross and Red Crescent Societies before moving to the World Health Organisation as a communications officer.
She came to the UK in 2007 after securing a scholarship at London Metropolitan University to study a master's in communication management and met her future husband through mutual friends a month later.
The couple were married in August 2009 in Winchester and their daughter was born in June 2014.
She was held in her native country a year later.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The specs
Engine: 2.0-litre turbo 4-cyl
Transmission: eight-speed auto
Power: 190bhp
Torque: 300Nm
Price: Dh169,900
On sale: now
