NEW YORK – Stocks rallied Friday after a two-day rout that saw the Dow lose almost 1,400 points.
The Dow Jones Industrial Average rose 364.52 points, or 1.46 percent, to 25,417.35. The S&P 500 index was 1.45 percent higher, while tech-heavy Nasdaq – hardest hit in Wednesday’s battering – gained 2.22 percent.
The Russell 2000, an index of small-company stocks, edged up less than a percent after falling into official correction territory in Thursday’s rout. Asian and European markets were also higher.
“This was bound to happen. We knew we would reset at some point,” said Joe Wirbick, president of Sequinox, a financial planning firm in Lancaster, Pennsylvania. He noted the economy remains strong, pointing to the almost 50-year low in the unemployment rate, among other factors.
“Just because the market has been on the rise for such a long time doesn’t mean the race is over,” he said. “Markets shift. That’s just life.”
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On Wednesday and Thursday, investors appeared edgy over a recent jump in interest rates and the impact Chinese tariffs could have on tech companies. The latter concern seemed to dissipate after reports President Donald Trump and Chinese leader Xi Jinping remain committed to meeting at the G-20 summit in November.
The big-name technology stocks that led the declines earlier this week were clawing back losses Friday. Amazon jumped 4.01 percent; Apple gained 3.22 percent; and Netflix increased an impressive 5.57 percent.