Stocks rose on Friday as technology names once again attempt to bounce back from recent slump.
The Dow Jones Industrial Average gained about 170 points, while the S&P 500 rose 0.7% and the Nasdaq Composite jumped 1%.
Shares of major technology names rebounded slightly with Apple, Amazon, Microsoft and Netflix all in the green. The tech sector experienced a massive pullback that saw the Nasdaq drop 10% in just three sessions, dipping into correction territory.
Peloton and Oracle jumped on the back of better-than-expected quarterly results. Peloton gained more than 10% and Oracle climbed 4%.
Douglas Busch, founder of ChartSmarter.com, said a “hallmark” of a healthy market is closing near its high after a weak start. “The opposite of that action could be the definition of how the benchmarks fared Thursday,” he said.
“Decent early gains quickly faded, and as many stated last week’s lows were critical to hold,” Busch said in a note to clients. “Perhaps, for the first time in a while, we can say advantage bears.”
The market is on track to post big losses for the holiday-shortened week. The Dow is down 2.1% this week through Thursday’s close, on pace for its worst week since June, while the S&P 500 has fallen 2.56% this week, on pace for its second straight weekly loss for the first time since May. The broader market index was also on pace for its worst week since June 26, when it slid 2.9%. The tech-heavy Nasdaq has dropped 3.5%, headed for its worst week since March.
“The next couple of sessions will be crucial in judging the possible extent of the pullback, and bulls will be looking for signs of positive divergences as the major indices approach their 50-day moving averages,” said Ken Berman, strategist of Gorilla Trades.
— CNBC’s Yun Li contributed reporting.
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