- Dow Jones Industrial Average, DJIA, was adding 306.62 points, or 1.2%, to 25,886.01.
- S&P 500 index put on 41.08 points, or 1.44%, to 2,888.68.
- Nasdaq Composite index also rise, adding 129.38 points, or 1.67%, to 7,895.99.
Global markets traded with an upbeat tone into the weekend with North American equities recovering a portion of their recent selloff. US stocks staged a recovery on Friday with the Dow Jones Industrial Average ended higher by around 300 points and rose for a second day following a yo-yo week with risk-on and risk-off flipping from one day to the next, with the biggest drop for the year coming on Wednesday.
The Dow Jones Industrial Average, DJIA, was adding 306.62 points, or 1.2%, to 25,886.01, while the S&P 500 index put on 41.08 points, or 1.44%, to 2,888.68. The Nasdaq Composite index also rise, adding 129.38 points, or 1.67%, to 7,895.99. Stocks were still ended down for the week in whipsaw 1% daily moves across the Dow and the S&P 500 index saw its 7th one-day 1% move for the month.
Intermarket analysis
Looking across the markets, the front-end rates remained under pressure with the 2-Year UST-bill yields seeing modest gains to extend their rally to 16bps for the week while 5s/30s steepened by 6bps. Crude oil prices (+0.8%) saw modest gains as well, staying in toe with the US stock markets while gold prices drifted lower from recent highs. The Greenback was mixed but left the risk-off currencies weighed on JPY (-0.2%) and CHF (-0.2%). GBP (+0.5%) saw its largest one day rally in a month ahead of the Fed's Jackson Hole Symposium that will be the week's highlight.
DJIA levels
The DJIA recovered from the August lows having pierced below the 200-day moving average on three occasions this month to the downside. If bulls cannot claim back the 26000s with conviction, bears will target a run to the 50% mean reversion level of the late Dec 2018 swing lows and mid-July swing market highs, with the target located down in the 24500s.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.