U.S. Stocks Continue To Recover From Yesterday's Multi-Month Lows

wallstreet aug13 25feb22 lt

Stocks have moved mostly higher in morning trading on Friday, extending the stunning rebound seen over the course of the previous session. The major averages have all moved to the upside, although the tech-heavy Nasdaq is posting only a modest gain after outperforming on Thursday.

Currently, the major averages are just off their highs of the session. While the Nasdaq is up just 20.90 points or 0.2 percent at 13,494.49, the Dow is up 381.77 points or 1.2 percent at 33,605.60 and the S&P 500 is up 39.41 points or 0.9 percent at 4,328.11.

The strength on Wall Street comes as traders continue to look to pick up stocks at relatively reduced levels following the sell-off seen in recent sessions.

The major averages showed a notable rebound from multi-month intraday lows during trading on Thursday but remain well off their recent highs.

Concerns about the eventual Russian invasion of Ukraine weighed on the markets late last week and early this week, although some traders may see the selling as overdone.

While the U.S. and its allies have imposed severe sanctions on Russia in response to the attack, the measures are not seen as crippling as some had feared.

The West's seeming unwillingness to target Russia's energy sector has helped ease worries about a spike in oil and gas prices fueling further inflation.

After reaching a high above $100 a barrel in the previous session, crude for April delivery is falling $0.69 to $92.12 a barrel.

News that Russia is prepared to send a delegation to Belarusian capital Minsk for talks about Ukraine may also be contributing to the positive sentiment.

Russia's apparent willingness to hold talks comes after Ukrainian President Volodymyr Zelenskyy signaled we has open to discussing Ukraine's "neutral status."

Steel stocks have moved substantially higher in morning trading, driving the NYSE Arca Steel Index up by 3.2 percent.

Significant strength has also emerged among banking stocks, as reflected by the 2.5 percent jump by the KBW Bank Index.

Pharmaceutical stocks are also seeing considerable strength on the day, with the NYSE Arca Pharmaceutical Index surging up by 2.5 percent.

Utilities, healthcare and transportation stocks have also moved notably higher, while computer hardware stocks are bucking the uptrend.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index surged up by 2 percent, while China's Shanghai Composite Index climbed by 0.6 percent.

The major European markets have also shown substantial moves to the upside on the day. While the U.K.'s FTSE 100 Index has spiked by 3.6 percent, French CAC 40 Index is up by 3.2 percent and the German DAX Index is up by 2.9 percent.

In the bond market, treasuries have bounced back near the unchanged line after seeing early weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 1.974 percent.

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