US stock market opens strong to bounce back from previous loss

Major indices on the US stock market opened strongly on Friday, bouncing back from the previous session’s losses.

The Dow Jones industrial average soared 174 points, or 0.5%, to 35,053 at 9.35 a.m. EDT, and the S&P 500 was up 21 points, or 0.49%, to 4,515.

The Nasdaq increased 89 points, or 0.58%, to 15,337 with AMC Entertainment rising 2.3% and Intel adding 1.8%.

The indices closed Thursday with losses between 0.25% and 0.43% as persistent weak labor market conditions have created downward pressure on the US economic recovery outlook.

Despite higher inflation, which earlier showed producer prices rising 8.3% in August year-on-year, investors were keen on taking advantage of lower stock prices and declining volatility.

The VIX volatility index, also known as the fear index, was plummeted 8.2% to 17.26 shortly after opening bell on Wall Street.

The yield on 10-year US Treasury notes was up 1.8% to 1.324%, while the dollar index was flat at 92.47.

Precious metals were mixed with gold remaining almost unchanged at $1,794 per ounce, but silver rising 0.3% to $24.1.

Oil prices reversed course from the previous day’s losses by rising around 2%. Brent crude was trading at $72.79 per barrel and West Texas Intermediate was at $69.64.

Anadolu Agency