The US equity market finished volatile session higher on Thursday, 14 May 2020, snapping a two-sessions losing streak, led by a resurgence for some of the recent beaten-down stocks.
Even so, the S&P 500 index wound up with its biggest weekly drop since late March.
The S&P 500 rose 11.20 points, or 0.4%, to 2,863.70.
The S&P 500 extended losses into a second day and the dollar fell as Powell said the recovery "may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems".
Meanwhile, Hu Xijin, editor-in-chief of Chinese state-run publication Global Times, tweeted on Friday that China would "restrict or investigate" USA companies including Qualcomm, Cisco Systems and Apple if the US takes further action to block Huawei's supply chain.
"The overarching concern that we've had as this epidemic has worked its way around the globe is that US-China relations are heading in the wrong direction and that can cause a worse economic effect than the pandemic itself", said Art Hogan, the chief market strategist of National Securities in NY.
Meanwhile, economic data continued to paint a grim picture with the latest batch of reports indicating USA retail sales and manufacturing output endured record declines in April as the virus-led slump seeped into the second quarter.
Communications, health care and technology stocks accounted for much of the gains. The Nasdaq Composite .IXIC was up 23.06 points, or 0.26%, at 8,966.78.
Materials rose four per cent as the price of gold climbed closer to a record high.
Energy stocks dropped 4.3%, the steepest percentage losses among the 11 major S&P sectors.
Oil prices increased $2.02 to $29.58 US a barrel.
The three main stock indexes are now headed for their worst week since mid-March, as hopes of a quick economic recovery were dashed this week following sobering comments from Federal Reserve Chairman Jerome Powell and leading US infectious disease expert Anthony Fauci.
Wall Street is looking ahead to the fall and next year in hopes that the recession doesn't drag out, paving the way for corporate profits to bounce back.
"Looking at states that have (begun) reopening to see what happens with the virus data, do you see an acceleration?" It is the sharpest decrease in retail sales on record as the COVID-19 pandemic forced Americans to stay at home and many businesses to close.
Major indexes fell to start the day before turning higher. Retail sales fell 7.5% in April, according to data reported Friday, slightly worse than consensus forecasts.
Analysts blamed the remarks for sucking momentum out of U.S. markets, which have rallied with few pullbacks since early April on anticipation of a speedy economic recovery.