With some traders picking up stocks at reduced levels following the initial sell off, stocks have moved well off their lows of the session over the course of morning trading on Friday. The major averages have staged a notable recovery attempt, although they remain firmly negative.
The sell off seen at the open came as traders reacted to news that Dubai World, the main investment arm of Dubai, has requested to postpone payment on nearly $60 billion in debt. The news raised concerns about the potential impact of a default by the company.
Despite the recovery attempt by the broader markets, significant weakness remains visible in a variety of sectors. Resource stocks continue to post steep losses, as commodities have regained some ground but remain sharply lower.
While most of the other major sectors have also moved off their worst levels, electronic storage, housing, and networking stocks continue to post notable losses.
The major averages have moved back to the downside in recent trading but remain well off their lows for the session. The Dow is currently down 136.41 at 10,327.99, the Nasdaq is down 26.69 at 2,149.36 and the S&P 500 is down 15.82 at 1,094.81.
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