US stock market opens strong to bounce back from previous loss

By Ovunc Kutlu

ANKARA (AA) - Major indices on the US stock market opened strongly on Friday, bouncing back from the previous session's losses.

The Dow Jones industrial average soared 174 points, or 0.5%, to 35,053 at 9.35 a.m. EDT, and the S&P 500 was up 21 points, or 0.49%, to 4,515.

The Nasdaq increased 89 points, or 0.58%, to 15,337 with AMC Entertainment rising 2.3% and Intel adding 1.8%.

The indices closed Thursday with losses between 0.25% and 0.43% as persistent weak labor market conditions have created downward pressure on the US economic recovery outlook.

Despite higher inflation, which earlier showed producer prices rising 8.3% in August year-on-year, investors were keen on taking advantage of lower stock prices and declining volatility.

The VIX volatility index, also known as the fear index, was plummeted 8.2% to 17.26 shortly after opening bell on Wall Street.

The yield on 10-year US Treasury notes was up 1.8% to 1.324%, while the dollar index was flat at 92.47.

Precious metals were mixed with gold remaining almost unchanged at $1,794 per ounce, but silver rising 0.3% to $24.1.

Oil prices reversed course from previous day's losses by rising around 2%. Brent crude was trading at $72.79 per barrel and West Texas Intermediate was at $69.64.