Published: Sat, February 10, 2018
Finance | By Gustavo Carr

Dow rises more than 300 points in bumpy end to brutal week

Dow rises more than 300 points in bumpy end to brutal week

US stocks swung wildly on Friday, closing sharply higher but still ending the week with loss of over 5 percent.

With yesterday's drops, the benchmark S&P 500 and the Dow industrials confirmed they were in correction territory, both falling more than 10 per cent from January 26 record highs. At midday, the market was on pace for its worst weekly decline since October 2008, at the height of the financial crisis. By late afternoon, stocks had pared some of their losses but remained on course to add to the weeklong sell-off.

USA stocks ended higher on Friday after wild swings, a day after both the Dow Jones Industrial Average and the S&P 500 fell into correction territory.

On Monday, the financial, healthcare and industrial sectors fell the most, but declines were spread broadly as all major 11 S&P sectors dropped at least 1.7%.

The S&P 500 last confirmed a correction in January 2016, when it fell 13.3 per cent amid concerns about a slump in oil prices.

"When you have an early morning rally in a decline of this nature, all that does is invite selling", said Bruce Bittles, chief investment strategist at Baird.

"I'd like to see buying come in late in the day instead of having a selloff like we had yesterday". The Dow fell by more than 1,000 points on both Monday and Thursday.

It's too soon to call that a bottom in the market's correction, but it was a good sign.

The turbulence in USA stock indexes followed a broad slide in global markets.

The Dow Jones industrial average also rose 1.4%.

The broader S&P 500 also tanked lower - finishing at 2,581- down around 100 points, or 3.75%.

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Wall Street tumbled back into sell-off mode, with the Dow plunging more than 1,000 points as worries over interest rate hikes continued to drag the market down.

North American markets largely pushed higher Friday after a choppy session, capping off a tumultuous period that has seen Canada's main stock index drop more than five per cent since last week and eight per cent from its all-time high. Inflation can also send bond yields higher, which makes it more expensive for individuals, companies and even the US government to borrow money.

Some companies rose after reporting quarterly results and outlooks that beat Wall Street's forecasts. Skechers USA (SKX) climbed $2.88, or 7.5 percent, to $41.06. Chipmaker Nvidia added $14.56, or 6.7 percent, to $232.08.

Roomba maker iRobot plunged 24 percent after its earnings fell far short of what investors were expecting.

Investors also unloaded riskier corporate bonds during the Wall Street stock market rout. It's still up 15 percent over the past year. Neither did the 0.45 percent rise in yields to 2.85 percent on the 10-year Treasury.

Track the Dow live at Markets Insider.

The three indexes finished the week down more than 5 per cent.

This is similar to the definition of a bear market when prices are down 20 per cent from their peak, which can happen more gradually.

The Nasdaq is down 188.96 points, or 2.6 per cent.

The last one happened during the 2008 financial crisis and lasted until March 2009 when the S&P sank almost 57 percent from peak to trough, according to Yardeni Research.

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