Stocks open sharply higher after two-day bloodbath

U.S. stocks opened sharply higher on Friday, reversing a steep two-day decline that saw the Dow lose 1,300 points.

Big technology and consumer companies, which took some of the worst losses earlier this week, were solidly higher in early trading. Amazon jumped 3.8 percent and Apple rose 2.9 percent.

Citigroup jumped 2.5 percent after reporting higher earnings.

The Dow rose 383 points, or 1.5 percent, to 25,433. The Nasdaq composite jumped 163 points, or 2.2 percent, and the S&P 500 added 41 points. Asian and European markets also rose.

Bond prices fell, continuing the week’s trend. The yield on the 10-year Treasury rose to 3.16 percent.

Volatility is back

Analysts say the eruption of market volatility over the previous two days should not be surprising, especially after the long stretch of relative calm investors have enjoyed.

“Volatility is…  not to be feared, but embraced, as varying data points will cause bouts of market anxiety. But remember that fundamentals are still strong,” said John Lynch, chief investment strategist at LPL Research.

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Categories: Business

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