Wall Street indexes snapped a losing streak on Friday and technology stocks came roaring back after a week of blistering losses as investors looked for bargains ahead of earnings season even as worries about U.S.-China trade tensions lingered.
The Dow Jones Industrial Average rose 287.16 points, or 1.15 percent, to 25,339.99, the S&P 500 gained 38.71 points, or 1.42 percent, to 2,767.08 and the Nasdaq Composite .added 167.83 points, or 2.29 percent, to 7,496.89. The Dow has been 414 points higher earlier in the day and was once down 52 points at the day’s low.
Energy and financial stocks continued to fall and bank stocks kicked off the third-quarter financial reporting season with a whimper, while investors fled insurance stocks after Hurricane Michael slammed into Florida.
The technology sector was the biggest gainer of the S&P’s 11 major industry indexes, with a 1.5 percent advance, but it was still on track for its biggest weekly drop since March.
“Generally what we were seeing is more momentum and technology names selling off. Now buyers are coming back to say some of these are babies that were thrown out with the bath water,” said Laura Kane, head of Americas thematic investing at UBS Global Wealth Management.
“Now we’ve had the pullback, valuations look attractive,” said Kane, although without a U.S.-China trade deal, “some of the sources of volatility are not going to go quickly,” she added.
The S&P’s financial sector was the biggest percentage loser on the day with a 0.9 percent drop, while the S&P 500 banks subsector slid 1.6 percent. The biggest drag on the subsector was JPMorgan Chase & Co (JPM.N), which reversed early gains to trade down 2 percent despite its quarterly profit beating expectations.
PNC Financial (PNC.N) led the percentage losers among bank stocks, with a 6.5 percent drop after the