US stocks extend rebound after sell off
Monday, 11 June 2007
NEW YORK, June 10 (REUTERS): Stocks snapped a three-day losing streak Friday, letting investors recoup some of the losses incurred during a week in which concerns about interest rates roiled the US market. In Friday's session, the Dow Jones industrial average showed its biggest point gain in more than two months, and the Standard & Poor's 500 index crossed back above the 1,500 mark.
After briefly dipping into negative territory, stocks gained steam Friday as yields on the 10-year Treasury note backed off five-year highs of 5.25 per cent. As stocks closed Friday, the yield on the benchmark note hovered around 5.11 per cent.
Yields, which move in the opposite direction of bond prices, jumped during the week after investors grew less optimistic that the Federal Reserve would lower short-term interest rates. The sentiment emerged following comments from Fed Chairman Ben Bernanke about inflation and as several central banks outside the United States raised rates. A move in the 10-year bond yield above 5.0 per cent Thursday - a level not seen since last summer - sent stock market investors rushing to bonds.
The pullback during the week left stocks ripe for buying Friday.
The Dow industrials rose 157.66, or 1.19 per cent, to 13,424.39.
After briefly dipping into negative territory, stocks gained steam Friday as yields on the 10-year Treasury note backed off five-year highs of 5.25 per cent. As stocks closed Friday, the yield on the benchmark note hovered around 5.11 per cent.
Yields, which move in the opposite direction of bond prices, jumped during the week after investors grew less optimistic that the Federal Reserve would lower short-term interest rates. The sentiment emerged following comments from Fed Chairman Ben Bernanke about inflation and as several central banks outside the United States raised rates. A move in the 10-year bond yield above 5.0 per cent Thursday - a level not seen since last summer - sent stock market investors rushing to bonds.
The pullback during the week left stocks ripe for buying Friday.
The Dow industrials rose 157.66, or 1.19 per cent, to 13,424.39.