Last
Updated Oct 12, 2018 1:20 PM EDT

U.S. stocks opened sharply higher after opening on Friday, regaining some stability after 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 at 1:00 p.m. Eastern time on Friday. Amazon was up 2.5 percent and Apple was up 2 percent.

The Dow was up 122 points, or half a percent, after jumping nearly 400 points at the open. The S&P 500 was up .6 percent, while the tech-heavy Nasdaq was up 1.2 percent. Asian and European markets also rose.

Bond prices fell, continuing the week’s trend. The yield on the 10-year Treasury rose to 3.14 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.

Once companies start to report quarterly earnings, that should settle the markets, as investors will realize that plenty of profitability remains, UBS Global Wealth Management wrote in a note.

“Our expectation that corporate America will indicate that the earnings growth outlook remains favorable… should help the markets stabilize sooner rather than later,” UBS wrote. “The combination of good US economic fundamentals, a very low probability of recession in the next 12 months, and equity valuations that are far from stretched all support our view that the bull market remains intact.”

–CBS News’ Irina Ivanova contributed reporting

© 2018 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.



READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here