The major averages stage a comeback with the S&P 500 rising to a fresh record on Friday as the major averages rebounded from the previous session's losses over concerns of a slowdown in global economic growth. The Dow Jones Industrial Average rose 454 points, or 1.3%. The S&P 500 is higher by 50 points or 1.1%. The technology-heavy Nasdaq Composite is higher by 141 points to nearly 1%. The S&P 500 is headed for its 6th positive week in seven.
Friday's comeback brought all three majors averages into the green for the week. The Dow is now up 0.3% for the week. The S&P 500 and Nasdaq are up 0.4% and 0.35% since Monday, respectively.
The stocks that led the losses on Thursday, reopening plays and banks, notched gains on Friday. Bank of America jumped 2.5%, leading a bounce in financial shares. Royal Caribbean and Wynn Resorts each popped 2%. American Airlines and United Airlines gained about 2% and United rallied 3%.
Shares of GM gained 4.5% after Wedbush said the stock is a buy and could jump more than 50% as investors realize the extent of its tech and electric vehicle evolution.
Some Big Tech stocks were marginally weaker on Friday as President Biden was set to sign a new executive order aimed at the competitive practices by the sector's giants. Amazon was down about 0.5% after hitting a new all-time high on Thursday.
The yield on the 10-year Treasury rebounded 7 basis points to 1.36%, easing concerns about an economic slowdown (1 basis point is 0.01%). Falling yields have mystified investors lately, with the 10-year yield falling to 1.25% at its low on Thursday.
Thursday's losses, which saw the Dow drop nearly 260 points, came as the proliferation of the highly infectious delta Covid variant also fueled worries about the global economic comeback. The Olympics announced a ban of spectators at Tokyo's summer games as Japan declared a state of emergency to curb the spread of coronavirus.
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