Stocks bounce higher on Wall Street a day after big rout

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Stocks rose broadly on Wall Street in midday trading Friday, recouping some of their losses a day after the market had its biggest rout since mid-March.

The S&P 500 was up 1.2% a day after dropping 5.9%. The benchmark index is still headed for a weekly loss following three weeks of solid gains. Small-company stocks and bond yields moved broadly higher, signs that pessimism about the economy was easing.

"Yesterday was the market taking a needed breath and saying 'OK, this is probably going to take more time than we were expecting," said Willie Delwiche, investment strategist at Baird. "Today, it's `maybe we overreacted yesterday."' The comeback rally lost some strength by midday Friday. The Dow Jones Industrial Average was up 401 points, or 1.6%, to 25,531. It had been up more than 800 points in the early going. The Nasdaq, which climbed above 10,000 points for the first time on Wednesday, was up 1.2%. The Russell 2000 index of small companies also gave up much of the ground it gained in morning trading. It was up 1% after an early gain of 4.2%. European markets were mostly higher, but Asian markets ended broadly lower.

 

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