U.S. Stocks Showing Strong Move Back To The Upside

Stocks have shown a strong move to the upside during trading on Friday, regaining ground following the sell-off seen in the previous session. The major averages have all moved notably higher but remain on track to post steep weekly losses.

Currently, the major averages are off their highs of the session but still firmly positive. The Nasdaq is up 243.19 points or 1.4 percent at 17,546.20, the S&P 500 is up 64.63 points or 1.2 percent at 5,586.15 and the Dow is up 360.41 points or 0.9 percent at 41,173.98.

The rally on Wall Street comes as some traders look to pick up stocks at reduced levels following the steep drop seen on Thursday, which dragged the Nasdaq and the S&P 500 down to their lowest closing levels in six months.

The nosedive also pulled the S&P 500 into correction territory, as the index plunged by more than 10 percent from February’s record highs.

Positive sentiment may also have been generated in reaction to news the U.S. is likely to avoid a government shutdown after Senate Minority Leader Chuck Schumer, D-NY, said he would vote to advance a Republican spending bill funding the government through September.

While Democrats oppose the bill, Schumer argued allowing President Donald Trump to “take even much more power via a government shutdown is a far worse option.”

However, some traders remain reluctant to get back into the markets amid ongoing concerns about the economic impact of Trump’s trade policies.

A report from the University of Michigan showing a substantial deterioration in consumer sentiment and a surge by inflation expectations may also be keeping buying interest relatively subdued.

Sector News

Steel stocks are turning in some of the market’s best performances on the day, resulting in a 2.8 percent spike by the NYSE Arca Steel Index.

Considerable strength is also visible among brokerage stocks, as reflected by the 2.7 percent surge by the NYSE Arca Securities Broker/Dealer Index. The index is bouncing off its lowest closing level in over four months.

Computer hardware stocks have also shown a significant move back to the upside, with the NYSE Arca Computer Hardware Index jumping by 2.4 percent after ending the previous session at a nearly four-month closing low.

Semiconductor, banking and networking stocks are also seeing significant strength, moving 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 advanced by 0.7 percent, China’s Shanghai Composite Index jumped by 1.8 percent and Hong Kong’s Hang Seng Index surged by 2.1 percent.

The major European markets have also moved to the upside on the day. The German DAX Index is up by 1.6 percent, the French CAC 40 Index is up by 1.0 percent and the U.K.’s FTSE 100 Index is up by 0.8 percent.

In the bond market, treasuries are giving back ground after turning higher over the course of the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.2 basis points at 4.306 percent.

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