WASHINGTON (dpa-AFX) - Stocks moved mostly lower in early trading on Friday, extending the sell-off seen over the course of the previous session. Selling pressure has waned over the course of the session, however, with the major averages climbing well off their lows of the session.
The tech-heavy Nasdaq has shown a notable turnaround, bouncing into positive territory after hitting its lowest intraday level in over a month. Currently, the Nasdaq is up 60.80 points or 0.2 percent at 26,069.65.
Meanwhile, the S&P 500 has rebounded after hitting a one-month intraday low but remains down 14.25 points or 0.2 percent at 7,649.18.
The narrower Dow has also climbed off its worst levels but continues to post a significant loss, down 540.37 points or 1 percent at 52,327.61.
Steep losses by American Express (AXP) Home Depot (HD) and Caterpillar (CAT) are weighing on the blue chip index, which ended the previous session roughly flat.
Lingering concerns about the artificial intelligence trade contributed to the early weakness on Wall Street along with a continued increase in the price of crude oil.
U.S. crude oil futures have jumped back well above $100 a barrel, while international benchmark Brent crude oil futures have reached a five-month high amid ongoing worries about supply disruptions in the Middle East.
However, traders seem reluctant to make significant moves ahead of several key events next week, including the Federal Reserve's latest monetary policy meeting.
The Fed is scheduled to announce its latest monetary policy decision next Wednesday, with the central bank widely expected to leave rates unchanged.
With a quarter point rate hike still widely expected at the Fed's December meeting, traders are likely to keep a close eye on the accompanying statement.
Earnings news is also likely to remain in the spotlight next week, with Amazon (AMZN), Microsoft (MSFT) and Google parent Alphabet (GOOGL) among the companies due to report their quarterly results.
'A combination of measured central bank guidance and strong technology results could support a recovery in risk appetite, while hawkish policy signals and disappointing earnings could trigger another round of selling,' said Daniela Hathorn, Senior Market Analyst at Capital.com.
'With U.S. GDP and PCE inflation also due, investors will have plenty of reasons to reassess interest rate expectations,' she added. 'The upcoming U.S. midterm elections on November 3 add another layer of uncertainty, suggesting volatility could remain elevated as markets head into November.'
Sector News
Oil service stocks have moved sharply higher along with the price of the precious metal, driving the Philadelphia Oil Service Index up by 5 percent to its best intraday level in almost a month.
Oil producer and natural gas stocks are also turning in strong performances, with the NYSE Arca Oil Index and the NYSE Arca Natural Gas Index climbing by 1.9 percent and 1.7 percent, respectively.
Networking, computer hardware and semiconductor stocks are also moving notably higher following yesterday's sell-off, while airline stocks have plummeted.
Reflecting the weakness in the airline sector, the NYSE Arca Airline Index has plunged by 3.7 percent, hitting its lowest intraday level in well over a year.
Gold, pharmaceutical and biotechnology stocks are also seeing considerable weakness, offsetting the strength in the aforementioned sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index fell by 0.3 percent, while China's Shanghai Composite Index advanced by 0.9 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index is down by 1.1 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both down by 0.7 percent.
In the bond market, treasuries are giving back ground after skyrocketing in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.1 basis points at 4.994 percent.
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