Dow climbs 287 points af­ter ‘tough week’ of big losses

USA TODAY Weekend Extra - - MONEY - Janna Her­ron

Stocks pulled off a strong show­ing Fri­day, but the rally wasn’t quite enough to re­coup the steep losses from an ear­lier two-day rout.

The Dow Jones in­dus­trial av­er­age rose 287.16 points, or 1.15 per­cent, to close at 25,339.99. Still, the blue-chip in­dex shed 1,107 points this week, its worst since March. On Wed­nes­day, the in­dex dropped more than 800 points, the big­gest loss since Fe­bru­ary.

Other in­dexes, while mak­ing gains Fri­day, had sim­i­lar bad weeks. The Stan­dard & Poor’s 500 in­dex lost 4.1 per­cent, while the tech-heavy Nas­daq – hard­est hit in Wed­nes­day’s bat­ter­ing – ended the week down 3.74 per­cent.

The Rus­sell 2000’s per­for­mance was the worst, how­ever. The small-com­pany stock in­dex fell into of­fi­cial cor­rec­tion ter­ri­tory Thurs­day and ended the week 11.16 per­cent off its Aug .31 peak.

“Ob­vi­ously, it was a tough week. The good news is things have sta­bi­lized to­day, and, while we’re off from the day’s highs, the re­bound was broad,” said Chris Cook, founder and pres­i­dent of Bea­con Cap­i­tal Man­age­ment.

Anx­i­ety over a jump in in­ter­est rates cou­pled with the un­cer­tain im­pact of Chi­nese tar­iffs on the econ­omy ig­nited the sell-off Wed­nes­day. Tech dar­lings got ham­mered hard two days ago but re­bounded with noise Fri­day. Ama­zon gained 4.03 per­cent, Ap­ple in­creased 3.57 per­cent, and Net­flix jumped 5.75 per­cent. The big­gest losers were trade-prone stocks such as Cater­pil­lar, Boe­ing and 3M, which all lost al­most 7 per­cent this week.

“We are mov­ing away from a mar­ket driven by low in­ter­est rates to one ... based more on fun­da­men­tals, so com­pa­nies de­pen­dent on bor­row­ing for growth – like tech stocks – look less at­trac­tive,” said Tim­o­thy Chubb, CIO at Univest Wealth Man­age­ment Di­vi­sion. “In­vestors are get­ting ac­cus­tomed to that.”

“Just be­cause the mar­ket has been on the rise for such a long time doesn’t mean the race is over,” said Joe Wir­bick, pres­i­dent of Se­quinox, a fi­nan­cial plan­ning firm in Lan­caster, Penn­syl­va­nia. “Mar­kets shift. That’s just life.”

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