FX.co ★ U.S. Stocks Moving Back To The Upside After Yesterday's Sell-Off

Stocks mostly climbed higher on Friday, recovering from the significant downturn observed in the previous session. All major indices gained ground, with the Dow approaching its record highs.

In the most recent trading, the major indices reached new highs for the session. The Dow rose 195.79 points, or 0.5 percent, to 39,949.54. The Nasdaq increased by 197.67 points, or 1.1 percent, to 18,481.08, and the S&P 500 advanced by 43.82 points, or 0.8 percent, to 5,628.36.

The positive movement on Wall Street comes as traders look to capitalize on stocks available at somewhat discounted levels following Thursday's steep drop, which partly resulted from a rotation out of leading tech stocks like Nvidia (NVDA).

Nvidia shares are currently jumping by 2.6 percent after a 5.6 percent plummet in the previous session.

Traders remain optimistic about the outlook for interest rates, even though the Labor Department released a report showing producer prices in the U.S. increased slightly more than expected in June.

The Labor Department stated its producer price index for final demand rose by 0.2 percent in June, following a revised unchanged reading in May.

Economists had anticipated a 0.1 percent increase in producer prices compared to the initially reported 0.2 percent dip for the previous month.

The report also noted that the annual rate of producer price growth accelerated to 2.6 percent in June from an upwardly revised 2.4 percent in May.

The annual rate of producer price growth was expected to inch up to 2.3 percent from the originally reported 2.2 percent for the previous month.

Despite the broader market's advance, shares of Wells Fargo (WFC) have sharply declined after the company reported weaker-than-expected net interest income for the second quarter.

Financial giants JPMorgan Chase (JPM) and Citigroup (C) have also moved lower following their second-quarter results.

### Sector News

Housing stocks are extending their surge from the previous session, with the Philadelphia Housing Sector Index jumping by 2.1 percent to a nearly two-month intraday high.

Substantial strength is also evident among semiconductor stocks, rebounding following Thursday's sell-off. The Philadelphia Semiconductor Index is up by 2.0 percent after a 3.5 percent plunge in the previous session.

Networking stocks have also shown a strong upward trend, driving the NYSE Arca Networking Index up by 1.7 percent.

Gains are also seen in computer hardware, biotechnology, and transportation stocks, with most other major sectors moving higher.

### Other Markets

In overseas trading, Asia-Pacific markets turned in mixed performances on Friday. Japan's Nikkei 225 Index plummeted by 2.5 percent, while Hong Kong's Hang Seng Index surged up by 2.6 percent.

In Europe, the major markets have all moved higher. The French CAC 40 Index jumped by 1.3 percent, the German DAX Index increased by 1.0 percent, and the U.K.'s FTSE 100 Index gained 0.4 percent.

In the bond market, treasuries have shown a lack of direction after moving sharply higher in the previous session. Consequently, the yield on the benchmark ten-year note, which moves opposite to its price, is up by less than a basis point at 4.202 percent.