A trader works on the floor of the New York Stock Exchange.
Bloomberg—Getty Images
By Tom Huddleston Jr.
September 26, 2014

U.S. markets bounced back on Friday, ending the week on the rebound following a massive Thursday sell-off that saw shares in every company on the Dow Jones Industrial Index lose value.

The Dow Jones gained 167 points on Friday to close at 17,113.15 – good for a 1.1% boost that comes one day after the blue-chip index plunged more than 260 points. The S&P 500 increased 0.9% on Friday after falling 1.6% a day earlier while the tech-heavy Nasdaq jumped 1%, recovering some of its 1.9% loss a day earlier.

Tech stocks led Thursday’s sell-off, but they were among the best-performing Nasdaq stocks on Friday. Apple (AAPL), which had dropped 3.8% after the tech giant pulled an update for its iOS8 following customer complaints, gained 2.9% after fixing the problem. Yahoo (YHOO), which had dipped 2.3% on Thursday, gained 4.4% after activist investors pushed it to buy AOL.

Alibaba (BABA), the Chinese e-commerce giant that posted a record-setting market debut a week ago, also saw its shares rise by 1.8% on Friday after they slipped earlier in the week following the company’s blockbuster IPO.

The market’s week-ending rebound was helped by positive economic news from the federal government, which revised its second quarter numbers to show that gross domestic product increased 4.6% this spring instead of the 4.2% growth rate it previously reported. The revised data means that the U.S. economy grew at its fastest rate since 2011 in this year’s second quarter. Meanwhile, a report from Thomson Reuters and the University of Michigan showed that consumer confidence rose this month to reach its highest point since July 2013.

Friday’s gains ended a volatile week for U.S. markets – one in which the Dow moved by at least 100 points five days in a row – starting with falling prices on Monday and Tuesday in response to the U.S.-led airstrikes in Syria as well as new government regulations meant to curb corporate tax inversions. Stocks rebounded on Wednesday, but then plummeted yesterday for a variety of reasons, including concern over the possibility that the U.S. Federal Reserve could raise interest rates sooner than had been expected.

Despite ending the week on a positive note, however, each of the three major indices was down, overall, for the week.


You May Like