A little bounce into November
Stocks ended a volatile trading week in the green, rebounding from October’s sell-off as investors weighed the latest batch of corporate earnings reports and assessed the prospects for a letup in the U.S.-China trade war.
The Standard & Poor’s 500-stock index rose 2.4 percent in the five days through Friday, its biggest weekly gain since March. The tech-heavy Nasdaq 100 rose 1.7 percent, despite a post-earnings plunge Friday in Apple that was its worst since January 2014. The Dow Jones industrial average increased 2.4 percent.
The bounce back from a torrid October that pushed the S&P 500 to the cusp of a correction came as investors took solace in positive U.S. economic indicators, an earnings season that has seen more than 80 percent of the large companies that have so far reported beating Wall Street’s profit estimates, and signs that the U.S. and China may be getting closer to resolving their trade dispute.
It’s also brought some of the widest price swings since the market struggled to recover from a double-dip correction last summer. The S&P 500’s historical 30-day volatility stands at almost 21 percent, up from about 6 percent at the beginning of October.
The U.S. Treasury will sell $45 billion of three-month bills and $39 billion of sixmonth bills Monday. They yielded 2.36 percent and 2.52 percent in when-issued trading.