U.S. Stocks Extend Rebound From Yesterday’s Early Sell-Off

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Extending the stunning recovery seen over the course of the previous session, stocks moved sharply higher during trading on Friday. The major averages all showed significant moves to the upside on the day.

Going into the close of trading, the Nasdaq and the S&P 500 reached new highs for the session. The Dow soared 834.92 points or 2.5 percent at 34,058.75, the Nasdaq surged 221.04 points or 1.6 percent to 13,694.62 and the S&P 500 spiked 95.95 points or 2.2 percent to 4,384.65.

For the holiday-shortened week, the Dow edged down by 0.1 percent, but the S&P 500 advanced by 0.8 percent and the Nasdaq jumped by 1.1 percent.

The rally on Wall Street came as traders continued to pick up stocks at relatively reduced levels following the sell-off seen in recent sessions.

The major averages showed a notable rebound from multi-month intraday lows during trading on Thursday but remain well off their recent highs.

Concerns about the eventual Russian invasion of Ukraine weighed on the markets late last week and early this week, although some analysts have called the selling overdone.

While the U.S. and its allies have imposed severe sanctions on Russia in response to the attack, the measures are not seen as crippling as some had feared.

The West’s seeming unwillingness to target Russia’s energy sector has helped ease worries about a spike in oil and gas prices fueling further inflation.

After reaching a high above $100 a barrel in the previous session, crude for April delivery tumbled $1.22 to $91.59 a barrel.

News that Russia is prepared to send a delegation to Belarusian capital Minsk for talks about Ukraine also contributed to the positive sentiment.

Russia’s apparent willingness to hold talks comes after Ukrainian President Volodymyr Zelenskyy signaled we has open to discussing Ukraine’s “neutral status.”

Sector News

Steel stocks turned in some of the market’s best performances on the day, with the NYSE Arca Steel Index soaring by 6 percent.

Substantial strength was also visible among banking stocks, as reflected by the 4 percent spike by the KBW Bank Index.

Utilities stocks also moved sharply higher over the course of the session, driving the Dow Jones Utilities Average up by 3.6 percent.

Pharmaceutical, housing, chemical and healthcare stocks also saw significant strength, moving notably higher along with most of the other major sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index surged up by 2 percent, while China’s Shanghai Composite Index climbed by 0.6 percent.

The major European markets also showed substantial moves to the upside on the day. While the U.K.’s FTSE 100 Index soared by 3.9 percent, the German DAX Index and the French CAC 40 Index spiked by 3.7 percent and 3.6 percent, respectively.

In the bond market, treasuries moved lower over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged up by 1.7 basis points at 1.986 percent.

Looking Ahead

Developments in Ukraine are likely to continue to attract attention next week, while traders are also likely to keep an eye on the monthly jobs data as well as reports on manufacturing and service sector activity.

Congressional testimony by Federal Reserve Chair Jerome Powell is also likely to be in focus, as traders look for additional clues about the outlook for monetary policy.

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