WASHINGTON (dpa-AFX) - After moving sharply higher early in the session, stocks continued to turn in a strong performance throughout the trading day on Friday. The major averages all showed significant moves to the upside, regaining ground following the recent downward trend.
The major averages ended the day off their highs of the session but still firmly positive. The Dow shot up 509.19 points or 1 percent to 52,573.29, the Nasdaq jumped 251.31 points or 1 percent to 26,333.04 and the S&P 500 advanced 65.28 points or 0.9 percent to 7,656.98.
Despite the rebound on the day, the major averages all moved to the downside for the holiday-shortened week. The Dow slumped by 1.6 percent, while the S&P 500 and the Nasdaq slid by 0.8 percent and 0.7 percent, respectively.
The recovery rally on Wall Street came amid a sharp pullback by the price of crude oil, which has skyrocketed over the past few days.
After soaring by more than 12 percent since the start of the week, U.S. crude oil futures have tumbled by nearly 2 percent on the day.
Crude oil futures gave back ground after the Financial Times reported Iran and Oman will meet with Gulf states next week to discuss reopening shipping through the Strait of Hormuz.
The pullback by the price of crude oil also came after the International Energy Agency downwardly revised in global oil demand forecast for the year
Bargain hunting also contributed to the strength on Wall Street after the recent weakness dragged the Dow and S&P 500 down to their lowest levels in over a month.
Meanwhile, traders largely shrugged off the Labor Department's closely watched report on consumer price inflation in the month of August.
While the report showed consumer prices increased in line with economist estimates, core consumer prices rose by slightly more than expected.
The Labor Department said its consumer price index climbed by 0.4 percent in August after inching up by 0.1 percent in July.
Meanwhile, excluding sharply higher energy prices and an uptick in food prices, core consumer prices rose by 0.3 percent in August after edging up by 0.2 percent in July. Economists had expected core prices to rise by another 0.2 percent.
The data has widely solidified expectations that the Federal Reserve will raise interest rates by a quarter point next week, although traders may feel a rate hike is already priced into the markets.
Sector News
Computer hardware stocks showed a substantial to the upside on the day, with the NYSE Arca Computer Hardware Index spiking by 4.5 percent.
Significant strength was also visible among networking stocks, as reflected by the 2.7 percent surge by the NYSE Arca Networking Index.
Semiconductor, retail and housing stocks also saw considerable strength, moving higher along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index tumbled by 1.9 percent, while China's Shanghai Composite Index slumped by 1.2 percent.
Meanwhile, the major European markets moved back to the upside on the day. While the U.K.'s FTSE 100 Index rose by 0.4 percent, the German DAX Index and the French CAC 40 Index both advanced by 0.8 percent.
In the bond market, treasuries came under pressure over the course of the session after an early rebound. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.1 basis points to a nearly three-year closing high of 4.975 percent.
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