NEW YORK (Reuters) – The U.S. benchmark S&P 500 stock index snapped a six-day losing streak on Friday 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&P500 energy and financial sectors managed to close the session with slight gains after a late afternoon rally.
The S&P technology index .SPLRCT 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.
But until the U.S. and China reach a trade deal, the rebound in the stockmarket 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,” said Sampson.
The Dow Jones Industrial Average .DJI rose 287.16 points, or 1.15 percent, to 25,339.99, the S&P 500 .SPX gained 38.76 points, or 1.42 percent, to 2,767.13 and the Nasdaq Composite .IXIC added 167.83 points, or 2.29 percent, to 7,496.89.
The technology sector’s biggest boosts were Apple (AAPL.O), and Microsoft (MSFT.O) which rose more than 3.0 percent. Visa (V.N) and Mastercard (MA.N) both climbed almost 5.0 percent, boosted by strong credit card sales included in bank earnings reports, according to Oakbook’s Sampson.
The S&P500’s financial sector ended the day up 0.1 percent and the S&P 500 banks subsector .SPXBK closed down 0.4 percent, well above its session low. The biggest drag