Stocks reversed sharply higher Friday as the main indexes continued to trade wildly and the S&P 500 reached a significant milestone.
X The S&P 500 dropped to its long-term 200-day moving average, a level it had not reached since July 2016, and found support at that line.
It's too soon to call that a bottom in the market's correction, but it was a good sign. The S&P rebounded from the line and closed 1.5% higher. Gains sped up in the final hour of trading, but indexes still logged big losses for the week.
The Nasdaq composite also reversed positively, although it did not touch its 200-day average. The composite added 1.4%.
The Dow Jones industrial average also rose 1.4%. United Technologies (UTX) was the biggest loser on the Dow, off nearly 2% in heavy trading. The company's Pratt & Whitney unit is checking a problem with its new-generation geared turbofan jet engines being used in the Airbus A320neo.
The Russell 2000 jumped more than 1.3% at the closing bell, while the S&P SmallCap 600 rallied 1.1%.
The Dow utilities led with a 2% increase, but the sector index remains in a pronounced downtrend as dividend-heavy assets suffer amid increases in Treasury yields. The benchmark 10-year yield fell 2 basis points to 2.86% Friday afternoon.
Volume rose from Thursday's levels, according to preliminary data. Winners led losers by 8-5 on the Nasdaq and by 7-5 on the NYSE.
Chip stocks, which have been nose-diving for three weeks, were among the best performing groups Friday. Nvidia (NVDA) helped the sector after the company beat Q4 expectations and gave a favorable outlook. Nvidia shares are rising from the 50-day moving average and are extended from a 218.77 buy point.
Discount retailers, RV makers, apparel labels, and cybersecurity companies were some of the other big gainers.
Oil stocks were weaker after oil prices continued to slide. U.S. crude fell 3.2% to close at $59.20 a barrel and was down nearly 10% for the week on signs that supply is rising. Drilling, oilfield services and exploration groups were among the laggards Friday.
Air freight was another group that skidded Friday. A report in the Wall Street Journal that Amazon.com (AMZN) is launching a package-delivery service for businesses rattled shares of UPS (UPS) and FedEx (FDX). UPS sank to the lowest level since May.
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