U.S. Stocks Extending Rebound From Yesterday’s Early Sell-Off
Stocks have moved mostly higher in morning trading on Friday, extending the rebound from the sell-off seen early in the previous session. The major averages have all moved to the upside, with the S&P 500 bouncing back near the record intraday high set on Wednesday.
In recent trading, the major averages have risen to new highs for the session. The Dow is up 388.86 points or 1.1 percent at 34,810.79, the Nasdaq is up 58.54 points or 0.4 percent at 14,618.32 and the S&P 500 is up 36.11 points or 0.8 percent at 4,356.93.
The rebound on Wall Street comes as traders continue to pick up stocks at somewhat reduced levels following yesterday’s early sell-off, which reflected concerns about the global economy.
The markets are also benefiting from recent upward momentum, which has helped propel the major averages to record highs despite lingering uncertainty about the outlook for monetary policy.
A rebound by treasury yields has also generated buying interest, with the yield on the benchmark ten-year note bouncing off its lowest closing level since February.
Yields have fallen sharply in recent sessions amid indications the Federal Reserve is not in a hurry to begin scaling back its asset purchase program.
Steel stocks have shown a substantial move to the upside in morning trading, driving the NYSE Arca Steel Index up by 3.7 percent.
The rebound by treasury yields has also contributed to significant strength among banking stocks, with the KBW Bank Index surging up by 3.4 percent.
Transportation stocks have also rebounding, resulting in a 2.2 percent jump by the Dow Jones Transportation Average. The average is bouncing off yesterday’s three-month closing low.
Oil service, chemical and housing stocks are also seeing considerable strength, moving higher along with most of the other major sectors.
In overseas trading, most stock markets across the Asia-Pacific region saw further downside during trading on Friday. Japan’s Nikkei 225 Index fell by 0.6 percent, while South Korea’s Kospi tumbled by 1.1 percent.
Meanwhile, the major European markets have shown strong moves back to the upside. While the French CAC 40 Index has spiked by 2 percent, the German DAX Index is up by 1.4 percent and the U.K.’s FTSE 100 Index is up by 0.9 percent.
In the bond market, treasuries are giving back ground after moving sharply higher over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 6.3 basis points at 1.351 percent.
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