Extending the rebound from the early sell-off seen in the previous session, stocks have moved sharply higher over the course of the trading day on Friday. With the upward move, the S&P 500 has reached a new record intraday high.

The major averages are currently hovering near their best levels of the day. The Dow is up 440.33 points or 1.3 percent at 34,862.26, the Nasdaq is up 116.36 points or 0.8 percent at 14,676.14 and the S&P 500 is up 42.66 points or 1 percent at 4,363.48.

The strength on Wall Street comes as traders have quickly shrugged off the concerns about the global economy that weighed on the markets in early trading on Thursday.

Combined with the recovery attempt seen as yesterday’s trading progressed, the major averages have more than offset the early pullback.

Currently, all three of the major averages are poised to end the session at new record closing highs, although the Nasdaq and the Dow are off their record intraday highs.

Despite worries about the spread of the delta variant of the coronavirus, traders seem optimistic the U.S. economy will continue to outperform.

A rebound by treasury yields has also generated buying interest, with the yield on the benchmark ten-year note bouncing off its lowest closing level since February.

Yields have fallen sharply in recent sessions amid indications the Federal Reserve is not in a hurry to begin scaling back its asset purchase program.

Sector News

Steel stocks continue to see substantial in mid-day trading, with the NYSE Arca Steel Index surging up by 4.2 percent on the day.

The rebound by treasury yields also continues to contribute significant strength among banking stocks, driving the KBW Bank Index up by 3 percent.

Oil service stocks have also moved sharply higher over the course of the session, resulting in a 2.9 percent spike by the Philadelphia Oil Service Index. The index is bouncing off its lowest closing level in over a month.

The rebound by oil service stocks comes amid a sharp increase by the price of crude oil, with crude for August delivery jumping $1.61 to $74.55 a barrel.

Transportation, chemical, and gold stocks are also seeing considerable strength, moving higher along with most of the other major sectors.

Other Markets

In overseas trading, most stock markets across the Asia-Pacific region saw further downside during trading on Friday. Japan’s Nikkei 225 Index fell by 0.6 percent, while South Korea’s Kospi tumbled by 1.1 percent.

Meanwhile, the major European markets showed strong moves back to the upside. While the French CAC 40 Index spiked by 2.1 percent, the German DAX Index surged up by 1.7 percent and the U.K.’s FTSE 100 Index jumped by 1.3 percent.

In the bond market, treasuries are giving back ground after moving sharply higher over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 6 basis points at 1.348 percent.

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