Daily Outlook

Dow jumps 200 points in choppy trading

Stocks rose in another volatile session on Friday as tech once again attempted to rebound from its recent slump. The Dow Jones Industrial Average traded 237 points higher, or 0.9%. The S&P 500 climbed 0.7% and the Nasdaq Composite traded 0.5% higher. Shares of Facebook, Netflix, Alphabet and Microsoft were up slightly. Apple and Amazon, however, slid 1.1% and 0.4%, respectively. Recently, the tech sector experienced a massive pullback that saw the Nasdaq drop 10% in just three sessions, dipping into correction territory.

Wall Street was coming off a session in which the major averages closed sharply lower after a steep downturn in tech names. The Dow and S&P 500 dropped more than 1% each on Thursday and the Nasdaq lost 2%. Those losses came after the benchmarks gave up solid gains.

The market is on track to post big losses for the holiday-shortened week. The Dow is down 1.7% this week while the S&P 500 has fallen 2.56%, set for its second straight weekly loss for the first time since May. The tech-heavy Nasdaq has dropped 3.5%, and is headed for its worst week since March. “The next couple of sessions will be crucial in judging the possible extent of the pullback, and bulls will be looking for signs of positive divergences as the major indices approach their 50-day moving averages,” said Ken Berman, strategist at Gorilla Trades.

The Labor Department said Friday its U.S. consumer price index rose by 0.4% in August. Eonomists polled by Reuters expected an increase of 0.3%. That larger-than-expected advance was driven the biggest cost increase for used cars and trucks in more than 51 years.

Dow jumps 200 points in choppy trading as tech tries to bounce back again, CNBC, Sep 11

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