The US benchmark S&P 500 stock index on Friday snapped a six-day losing streak as technology stocks recovered after a week of losses, with investors looking for bargains ahead of the third-quarter earnings reporting season.
Even the hard-hit S&P 500 energy and financial sectors managed to close the session with slight gains after a late afternoon rally.
The S&P technology index gained 3.2 percent on the day, showing its strongest one-day gain since March 26, although it still registered its biggest weekly drop since March 23.
“People are starting to buy in, thinking the higher flying growth stocks were oversold. They wanted to get in before next week when earnings start coming,” said Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
However, until the US and China reach a trade deal, the rebound in the stock market 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. Trade news is the wild card. That’s the big if,” Sampson said.
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 and the NASDAQ Composite added 167.83 points, or 2.29 percent, to 7,496.89.
For the week, the Dow lost 4.19 percent, the S&P fell 4.1 percent and the NASDAQ shed 3.74 percent.
The technology sector’s biggest boosts were Apple Inc and Microsoft Corp, which rose more than 3 percent, while Visa Inc and Mastercard Inc climbed almost 5 percent, boosted by strong credit card sales included in bank earnings reports, Sampson said.
The S&P500’s financial sector ended the day up 0.1 percent and the S&P 500 banks sub-sector closed down 0.4