- Stocks rallied Friday, breaking a three-day losing streak and giving investors a sigh of relief following the worst day on Wall Street in eight months.
- The Dow Jones industrial average fell more than 1,000 points between Tuesday and Thursday — but closed up nearly 300 points on Friday.
ADVERTISEMENT
The Dow surges nearly 300 points, snapping its 3-day skid
Stocks rallied Friday, ending Wall Street's three-day skid.
Stocks rallied Friday after the big banks got earnings season off to a solid start.
After initially gaining as many as 400 points, the Dow Jones industrial average briefly turned negative in midday trading before clawing its way back up to a gain of nearly 300 points, or 1.15%. The index lost more than 1,300 points between Tuesday and Thursday.
The Nasdaq Composite finished near session highs, booking a gain of 2.29% after briefly dipping into correction territory on Thursday.
ADVERTISEMENT
Earnings reports before the market open gave Wall Street a boost, with JPMorgan Chase & Co. reported a 24% jump in profits. Citigroup and Wells Fargo also reported solid results.
Treasury yields resumed a climb after dipping in the previous session. Investors sold off bonds earlier this week amid fears of rising interest rates, sending the 10- and 2-year yields to multiyear highs.
"The key question is whether that is the end of the sell-off," Societe Generale analysts wrote in an email.
"We certainly see some scope for a consolidation in the near term, but because renewed pressure from issuance and the fact that some of the risk factors may be resolved in November, our medium-term bearish bond view remains intact."
All eyes have been on a string of government-data releases this week, with investors paying particular attention to inflation gauges. The Federal Reserve is expected to continue tightening as the economy hums along, adding to three rate increases this year and eight since the financial crisis.
ADVERTISEMENT
Early Friday, the Labor Department said import prices had climbed faster than expected in September. But that was largely because of a booming energy market; prices excluding oil were mostly unchanged. Data out a day earlier showed consumer prices rose 0.1% during that same period, also falling short of economist expectations.
A measure of expected volatility on the S&P 500, the Cboe Volatility Index, backed off from its highest level since February. Also known as Wall Street's "fear index," the VIX tends to rise when stocks are down.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
ADVERTISEMENT