U.S. Stocks Snap Higher After Entering a 'Correction'

From TIME - February 9, 2018

U.S. stocks moved sharply higher in early trading Friday, recouping some of the ground lost a day earlier when indexes plummeted, deepening a weeklong sell-off that knocked the market into a correction for the first time in two years.

The Dow Jones industrial average was briefly up more than 300 points in early trading, a day after it suffered its second 1,000-point drop in a week.

Even with the solid start, the Standard & Poors 500 index, the benchmark for many index funds, was on pace to finish its worst week since January 2016.

The S&P 500, the benchmark for many index funds, rose 30 points, or 1.2 percent, to 2,611 as of 9:49 a.m. Eastern Time. The Dow gained 282 points, or 1.2 percent, to 24,142. The Nasdaq composite added 83 points, or 1.2 percent, to 6,861.

On Thursday, the S&P 500 and Dow entered a correctionthat is, a 10 percent decline from its latest peak. The indexes reached their latest record highs just two weeks ago.

Fridays gains were broad, with technology stocks, banks and consumer-focused companies accounting for much of the pickup. Some of the markets biggest winners over the past year were leading the market higher. Amazon rose 2.2 percent.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.86 percent from 2.83 percent.

The early rally in U.S. stock indexes followed a broad slide in global markets.

In Europe, Germanys DAX fell 1.2 percent, while Frances CAC 40 lost 1.2 percent. Britains FTSE 100 shed 0.7 percent. Asian markets fell more sharply. Tokyos Nikkei 225 lost 2.3 percent and Hong Kongs Hang Seng gave up 3.1 percent.

Investors also had their eye on the budget battle in Washington. President Donald Trump on Friday signed a $400 billion budget deal that sharply boosts spending and swells the federal deficit, ending a brief federal government shutdown.

U.S. stocks started to tumble last week after the Labor Department said workers wages grew at a fast rate in January.


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