US stocks rebound on tech rally amid volatile trading

Lucas Jackson/Reuters

  • US stocks climbed on Friday, recovering a portion of Thursday’s market sell-off that was led by technology stocks.
  • Stocks are set to record their first back-to-back week of losses since March, when the COVID-19 pandemic was front and center in investors’ minds, absent of a strong Friday rally.
  • Oil fell as investors continued to digest a report from the American Petroleum Institute that US stockpiles increased by nearly 3 million barrels. West Texas Intermediate crude sank as much as 1.7%, to $36.67 per barrel.
  • Watch major indexes update live here.

US stocks climbed on Friday, helping recover a portion of Thursday’s stock market sell-off that was led by technology stocks.

Tech stocks spearheaded gains on Friday amid volatile trading as investors sized up better-than-expected earnings from Peloton and Oracle. 

But Friday’s initial jump higher in the futures markets won’t be enough to prevent another week of losses for investors. All three major indexes are on track to record back-to-back weekly losses for the first time since early March, when the COVID-19 pandemic was front and center in investors minds. 

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Friday:

  • S&P 500: 3,354.78, up 0.5%
  • Dow Jones industrial average: 27,641.80, up 0.4% (117 points)
  • Nasdaq composite: 10,976.01, up 0.5%

Read more: Buy these 30 stocks that offer the best bargains for strong sales and earnings growth in a pricey market, Credit Suisse says

Goldman Sachs updated its third-quarter GDP forecast on Thursday to 35% annualized growth. The firm boosted its growth target after a stronger than expected August jobs report. The US added 1.37 million jobs in August, higher than an expected addition of 1.35 million jobs.

Economists surveyed by Bloomberg expect third-quarter GDP expansion of 21%.

Peloton surged on Friday after the connected fitness company cruised to its first quarterly profit ever on the back of increased spending for its bike and treadmills amid the COVID-19 pandemic. Oracle also posted a strong quarter of earnings growth, surpassing analyst expectations thanks to increased demand for its cloud services.

Read more: A senior portfolio manager at Morgan Stanley’s $665 billion investment management business tells us why the tech stock plunge isn’t a cue to abandon the sector – and where to find the biggest gains as the recovery resumes

Spot gold rose 0.3%, to $1,952.22 per ounce. The precious metal has remained in a narrow trading range of $1,900 to $2,000. Both the US dollar and Treasury yields traded flat in Friday’s trading session.

Oil extended its decline from Thursday as investors continue to digest reports of depressed demand due to the COVID-19 pandemic, coupled with increased supply from US oil producers. West Texas Intermediate crude sank as much as 1.7%, to $36.67 per barrel. Brent crude, oil’s international standard, fell 1.7%, to $39.38 per barrel, at intraday lows.

Read more: A $1.3 billion fund manager explains how investors can limit their losses during the stock market sell-off with bonds – and shares 6 sectors where he sees the best opportunities now

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