Stocks have moved mostly higher in morning trading on Friday, rebounding following the significant weakness seen in the previous session. The tech-heavy Nasdaq is bouncing off its lowest closing level in over two months.
Currently, the major averages are off their best levels of the day but are holding on to gains. The Dow is up 113.87 points or 0.5 percent at 25,604.34, the Nasdaq is up 54.42 points or 0.7 percent at 7,682.70 and the S&P 500 is up 12.69 points or 0.5 percent at 2,834.93.
Bargain hunting has contributed to the strength on Wall Street as some traders look to pick up stocks at reduced levels following Thursday's steep losses.
The markets are also benefiting from easing trade concerns as President Donald Trump said he remains hopeful of a U.S.-China trade deal, noting he will meet with Chinese President Xi Jinping at the G20 summit next month.
"And I think things, probably, are going to happen with China fast because I can't imagine that they can be thrilled with thousands of companies leaving their shores for other places," Trump said in remarks to farmers impacted by the escalating trade dispute.
Trading activity is somewhat subdued, however, as some traders may be reluctant to make significant moves ahead of the long Memorial Day weekend.
Uncertainty about the outlook for Brexit is also keeping traders on the sidelines following news of the resignation of U.K. Prime Minister Theresa May.
On the U.S. economic front, the Commerce Department released a report showing a pullback in durable goods orders in the month of April.
The report said durable goods orders tumbled by 2.1 percent in April after jumping by a downwardly revised 1.7 percent in March.
Economists had expected orders to slump by 2.0 percent compared to the 2.6 percent spike that had been reported for the previous month.
Excluding a steep drop in orders for transportation equipment, durable goods orders were unchanged in April following a revised 0.5 percent drop in March. Economists had expected a 0.2 percent uptick.
Biotechnology stocks have shown a significant move to the upside in morning trading, driving the NYSE Arca Biotechnology Index up by 1.7 percent.
Steel and networking stocks are also seeing considerable strength, while most of the other major sectors are showing more modest moves to the upside.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index dipped by 0.2 percent, while Hong Kong's Hang Seng Index rose by 0.3 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index has risen by 0.6 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are up by 0.7 percent and 0.8 percent, respectively.
In the bond market, treasuries are giving back ground after moving sharply higher in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.7 basis points at 2.333 percent.
For comments and feedback contact: editorial@rttnews.com
Market Analysis