By Caroline Valetkevitch and Laila Kearney
NEW YORK, Oct 12 (Reuters) – Stock markets worldwide rebounded on Friday after a multi-day sell-off but still registered their biggest weekly losses in months, while U.S. Treasury yields rose and the dollar held its gains.
Wall Street snapped a six-day losing streak as investors looked for bargains even as worries about U.S.-China trade tensions lingered. Technology shares led the gains.
“People are starting to buy in, thinking the higher-flying growth stocks were oversold,” said Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
But until the United States and China reach a trade deal, the rebound could be vulnerable as investors are anxious about the impact of tariffs on corporate profits. “If earnings come out good I think this rally is sustainable if we don’t get negative trade news,” she said.
Kicking off the U.S. earnings reporting period, three of the largest U.S. banks reported double-digit profit growth on Friday. The results reflected an array of positive business factors including a lift from cost-cutting programs implemented after the 2007-2009 financial crisis.
All three major U.S. stocks indexes posted their biggest weekly percentage declines since March 23, while the small-cap Russell 2000 index fell 5.2 percent for the week, its biggest weekly drop since January 2016.
The biggest market shakeout since February has been blamed on factors including fears about the impact of the U.S.-China tariff fight, a spike in U.S. bond yields this week and caution ahead of earnings season.
The Dow Jones Industrial Average rose 287.16 points, or 1.15 percent, to 25,339.99, the S&P 500 gained 38.76 points, or 1.42 percent, to 2,767.13