Stocks rebound after two down sessions

By MarketsFOXBusiness

Financial, energy stocks weigh on the US market

The Stock Swoosh’s Melissa Armo and Payden & Rygel chief economist Jeffrey Cleveland on the market selloff and the Federal Reserve’s rate hikes.

U.S. stocks were higher Friday, as strong bank earnings and bargain hunting helped markets rebound from two days of massive declines.

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The Dow Jones Industrial Average gained 287.16 points, or 1.15 percent, to 25,339.99. The S&P 500 rallied 38.76 points, more than 1.4 percent, to 2,767.13. The Nasdaq Composite jumped 167.83 points, or 2.29 percent, to 7,496.89.

JPMorgan Chase, Citigroup and Wells Fargo released their latest quarterly results, and their shares rose on the banks' strong results.

Stocks on Wednesday and Thursday suffered their worst declines since February. Despite the major stock indexes pointing higher Friday, the Dow Jones Industrial Average recorded its third straight week of losses.

TickerSecurityLastChange%Chg
I:DJIDOW JONES AVERAGES25441.56+62.11+0.24%
SP500S&P 5002775.06+6.28+0.23%
I:COMPNASDAQ COMPOSITE INDEX7469.7719-15.37-0.21%

Other factors playing into the rebound include reports that President Trump and his Chinese counterpart Xi Jinping may meet at the Group of 20 summit in Argentina in late November. The aim would be to find a way out of the impasse over trade that has led both countries to impose penalty tariffs on billions of dollars of each other's exports.

However, China reported on Friday an unexpected acceleration in export growth in September and a record trade surplus with the U.S., which could exacerbate an already-heated dispute.

There have also been reports that the U.S. Treasury Department will not call China a currency manipulator in its upcoming semiannual report.

U.S. stocks were whipsawed for a second straight session Thursday, a day after the Dow registered its third-largest point drop in its history.

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The blue-chip index tumbled about 546 points, or 2.13 percent, as investors continued to trade on concerns over rising interest rates. The Dow lost about 832 points in Wednesday trading.

FOX Business’ Ken Martin contributed to this article.

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