Feb 9, 2018

US Stocks Open Higher, Capping Turbulent Week

U.S. stocks opened higher in the last trading session of a turbulent week in which the Dow Jones Industrial Average and the Standard & Poors 500 Index plunged into correction territory for the first time in two years. The Dow at Friday's open moved nearly one-percent higher to 24,087, while the S&P 500 began the session at 2606, also a nearly-one percent gain. The NASDAQ Composite Index opened nearly 1.2-percent higher at 6,855. Earlier Friday, global stock indexes closed out the week in negative territory, deepening the week-long sell-off. France's CAC 40 Index fell 1.2-percent, Britain's FTSE 100 Index lost seven-tenths-of-one-percent and Germany's DAX finished 1.2-percent lower. Asian benchmarks fell more sharply. China's Shanghai Composite Index plummeted 4-percent, Tokyo's Nikkei 225 retreated 2.3-percent and Hong Kong's Hang Seng Index lost just over 3-percent. The U.S. sell-off began a week ago after the U.S. Labor Department reported wages grew rapidly in January, sparking concern of higher inflation and lower corporate profits. European markets were rattled by a signal from the Bank of England that it may boost interest rates in response to a strong global economy. Despite this week's heavy losses, U.S. benchmarks are still posting strong gains over the past year. As of Friday morning, the Dow was 19-percent higher, the S&P was up 12.5-percent and the NASDAQ was ahead by more than 19-percent. Many Wall Street observers had been expecting a correction, a drop in stock values of 10-percent or more over the most recent record high because the market is currently in the middle of its second-longest bull run, or market that is expected to rise, of all time. Until now, the booming market had not seen a correction in two years, an unusually long time.
by [email protected] (VOA News) via Economy - Voice of America

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