Stocks move broadly higher as turbulent week nears its end

S&P 500 US Dollar Gold Emerging Market Outlook What Happens After US Yield Curve Inverts

Stocks end mixed after a volatile day

Just look at the stock market, where perplexed investors have been sending stocks on a wild ride in August.

The Dow Jones Industrial Average, which has also seen tremendous losses this week, kept up momentum in trading Friday, two days after it's worst daily performance of 2019 also concerned experts about a recession.

The Dow Jones Industrial Average, DJIA, was adding 306.62 points, or 1.2%, to 25,886.01, while the S&P 500 index put on 41.08 points, or 1.44%, to 2,888.68. The Dow climbed 1.2% and the Nasdaq picked up 1.7%. It was the third straight week of losses for the three major indexes, however.

The Dow secured a 265 point rally to close the week, but crippling recession fears continue to threaten the USA stock market.

When comparing the performance of the S&P 500 in the following 6-months after the past five USA 2s10s curve inversion, the index has typically risen, averaging gains of almost 5%. Investors are now digging in for an even more protracted trade war.

"We're also heading into a tough season for the market", said Emily Roland, co-chief investment strategist at John Hancock Investment Management.

Jose Marques, chief executive of quantitative hedge fund Inferent Capital LLC, said he believes the recent volatility is part of a larger shift in how markets trade, leaving it more hard for investors to make money.

The market's swings have been largely driven by two factors: developments in the U.S. Since early 2009, whenever the S&P 500 has had a drop of 3% in a day, it either preceded or followed another such drop within a month 70% of the time. And the high level of volatility has investors on edge.

Risk-sensitive technology shares lead the rally on Friday. Utilities, which have been one of the safer havens for investors this month, lagged the market. The Nasdaq Composite .IXIC gained 61.74 points, or 0.79%, to 7,828.35 at the opening bell. JPMorgan Chase rose 2.4% and Bank of America rose 2.9%.

"No one actually knows what is next for the markets", said Fiona Cincotta, senior market analyst at City Index.

The Nasdaq is in a similar situation.

Yesterday, the US Treasury 2s10s curve inverted for the first time since 2007, further emphasising the downside risks that the global economy faces going forward.

Long-term Treasury yields jumped after a Bloomberg report revealed the US Treasury Department planned on reaching out to market participants regarding the possibility of issuing ultra-long bonds. The yield on 10-year Treasury slipped to 1.54% following a sharp decline Wednesday.

Mr Trump also criticised the Federal Reserve for hamstringing the U.S. economy by raising rates "too much & too fast" past year and not reversing its policy aggressively enough - the Fed cut its key rate by a quarter point last month. The central bank lowered interest rates by a quarter-point at its last meeting.

Add in worries over Brexit, Italian politics and political unrest in Hong Kong and the backdrop for stock markets is about as hard as at any time since the global financial crisis a decade or so ago. Brent crude oil, the global standard, rose 41 cents to close at $58.64 a barrel.

Wholesale gasoline fell 4 cents to $1.64 a gallon. Heating oil was unchanged at $1.81 per gallon. Natural gas fell 9 cents to $2.23 per 1,000 cubic feet.

Gold fell $7.10 to $1,512.50 per ounce, silver fell 9 cents to $17.10 per ounce and copper was unchanged at $2.59 per pound.

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