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Dow surges more than 250 points, regaining some of this week's steep losses

Fred Imbert

Stocks surged on Friday as worries over rising rates subsided and tech shares rebounded from steep losses earlier this week.

A slew of better-than-expected bank earnings also helped boost the market.

The Dow Jones Industrial Average jumped 269 points as Visa surged 4.6 percent. The S&P 500 gained 1.5 percent with the tech sector surging 2.9 percent. The Nasdaq Composite outperformed, climbing 2.3 percent.

Netflix zipped 6 percent higher, while Amazon and Apple gained 4.3 percent and 3 percent, respectively . Facebook rose 0.8 percent and Alphabet advanced 2.5 percent.


The move higher on U.S. stocks follows an uptick in global equities. In Europe, the German Dax and France's CAC 40 both traded higher. Asian equities also rose, with the Shanghai Composite surging 0.9 percent and Japan's Nikkei 225 gaining 0.5 percent.

But Wasif Latif, head of global multi-assets at USAA, said investors should remain cautious despite Friday's gains. "It's too early to tell if we're out of the woods yet," he said. "We have to wait and see how the market reacts in the next few days."

On Thursday, Wall Street closed sharply down, with the Dow falling over 540 points, bringing its two-day losses to more than 1,300 points. Sentiment was rocked around the globe in recent sessions, as investors grew nervous over the rise in interest rates and high valuations in tech shares.

President Donald Trump has recently criticized the U.S. Federal Reserve for the decline in stock markets, saying Wednesday that he wasn't happy with how the central bank continued to raise interest rates.

"The problem I have is with the Fed. The Fed is going wild. I mean, I don't know what their problem is that they are raising interest rates and it's ridiculous," Trump said during a telephone interview on Wednesday with Fox News. Trump went onto blame the Fed for the stock market decline on Thursday , but added that while he was disappointed, he wouldn't remove Jay Powell as Fed chair.

Stocks have also fallen this week as tech — the biggest S&P 500 sector by market cap weight — has lost nearly 6.8 percent through Thursday's close. These losses have sent the major indexes down more than 5 percent, on pace for their biggest weekly declines since March.

Sentiment was also lifted by stronger-than-expected third-quarter results from Wells and Citigroup, which sent their stocks up by more than 1 percent each. J.P. Morgan Chase also reported a better-than-forecast profit.

Expectations for this earnings season are high. Analysts polled by FactSet expected S&P 500 earnings to grow by 19 percent.

"Bigger picture, strong earnings from industrial and multi-nationals ... remains the 'fix' to this market pullback," said Tom Essaye, founder of The Sevens Report. "Until we get that, stocks will have a hard time bottoming."