4th Dec 2015 15:48
WASHINGTON (Alliance News) - Stocks have moved sharply higher in early trading on Friday, regaining some ground following the steep drop seen over the two previous sessions. The major averages have shown strong moves to the upside but remain well off their recent highs.
The early strength on Wall Street partly reflects bargain hunting on the heels of the recent pullback, which came amid concerns about the outlook for monetary policy.
Traders have also reacted positively to a Labor Department report showing stronger than expected job growth in the month of November.
The report said non-farm payroll employment jumped by 211,000 jobs in November compared to economist estimates for an increase of about 190,000 jobs.
The stronger than expected job growth has further cemented expectations the Federal Reserve will raise interest rates later this month, although the pace of monetary policy normalization is expected to be gradual.
Gold stocks have shown a substantial move to the upside in early trading, driving the NYSE Arca Gold Bugs Index up by 4.4%. The strength in the sector comes as the price of gold for February delivery has surged up USD25 to USD1,086.20 an ounce.
Commercial real estate, financial, airline and utilities stocks are also seeing significant strength, while energy stocks have come under pressure amid a sharp drop by the price of crude oil.
Currently, the major averages are just off their best levels of the day. The Dow is up 239.11 points or 1.4% at 17,716.78, the Nasdaq is up 59.14 points or 1.2% at 5,096.67 and the S&P 500 is up 24.80 points or 1.2% at 2,074.42.
Copyright RTT News/dpa-AFX