WASHINGTON (dpa-AFX) - Stocks have shown a strong move back to the upside in morning trading on Friday, regaining ground following the sell-off seen in the previous session. The major averages have all climbed firmly into positive territory but only partly offset Thursday's steep losses.
Currently, the major averages are off their highs of the session but holding on to strong gains. The Dow is up 697.38 points or 2.8 percent at 25,825.55, the Nasdaq is up 210.39 points or 2.2 percent at 9,703.16 and the S&P 500 is up 67.98 points or 2.3 percent at 3,070.08.
Bargain hunting has contributed to the early strength on Wall Street, as traders look to pick up stocks at relatively reduced levels.
The steep drop on Thursday marked the worst day for the markets since the sell-off seen as worries about the coronavirus began to escalate in March.
Worries about a second wave of coronavirus infections contributed to the sharp losses in the previous session even as Treasury Secretary Steve Mnuchin told CNBC the U.S. 'can't shut down the economy again.'
The sell-off on Thursday largely offset the gains seen earlier this month, although the major averages remain well off their March lows.
Adding to the positive sentiment, the University of Michigan released a report showing a continued rebound in U.S. consumer sentiment in the month of June.
The preliminary report showed the consumer sentiment index for June climbed to 78.6 from 72.3 in May and 71.8 in April. Economists had expected the index to rise 75.0.
Surveys of Consumers chief economist Richard Curtin said the increase by the index reflected gains in the outlook for personal finances and more favorable prospects for the national economy due to the reopening of the economy.
Meanwhile, a separate report from the Labor Department showed a bigger than expected jump in U.S. import prices in the month of May.
The Labor Department said import prices surged up by 1.0 percent in May after plunging by 2.6 percent in April. Economists had expected import prices to increase by 0.6 percent.
The rebound in import prices came as fuel prices spiked by 20.5 percent in May following the 31.0 percent nosedive in the previous month.
The report also showed a rebound in export prices, which climbed by 0.5 percent in May after tumbling by 3.3 percent in April. Export prices were expected to rise by 0.6 percent.
Energy stocks have shown a substantial rebound after falling sharply in recent sessions, with an increase by the price of crude oil contributing to the strength in the sector. Crude for July delivery is currently climbing $0.56 to $36.90 a barrel.
The Philadelphia Oil Service Index has spiked by 6.7 percent, while the NYSE Arca Oil Index is up by 4.4 percent and the NYSE Arca Natural Gas Index is up by 3.6 percent.
Bargain hunting is also contributing to considerable strength among steel stocks, as reflected by the 5.1 percent jump by the NYSE Arca Steel Index.
Housing stocks have also shown a significant move back to the upside, driving the Philadelphia Housing Sector Index up by 4.3 percent.
Networking, financial and transportation stocks are also rebounding from recent weakness, moving notably higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index slid by 0.8 percent, while Hong Kong's Hang Seng Index fell by 0.7 percent.
Meanwhile, the major European markets have rebounded following yesterday's sell-off. While the German DAX Index has jumped by 1.1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are up by 1.6 percent and 1.8 percent, respectively.
In the bond market, treasuries are giving back ground after moving sharply higher over the past few sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.4 basis points at 0.697 percent.
Copyright RTT News/dpa-AFX