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. Last Updated: 07/27/2016

Stocks Up After Fall On Friday




NEW YORK -- U.S. stock markets rebounded Monday and lifted European stocks off their lows, easing fears of a global market meltdown in the first session after Friday's historic point drops, as investors jumped back into household technology names and drove the Nasdaq composite to close with its biggest single-day point gain ever.


Wall Street's two biggest stock indexes soared, posting triple-digit gains that partly reversed their Friday plunge, as the bond market tumbled. The Nasdaq composite index climbed 217.87 points, or 6.56 percent, to finish at 3,539.16 - marking its biggest single-day point gain ever. The technology-driven Nasdaq, which fell 355.49 points on Friday and finished the week down 25 percent, got a lift Monday from a surge in the shares of Intel Corp., Cisco Systems and Sun Microsystems.


The blue-chip Dow Jones industrial average jumped 276.74 points, or 2.69 percent, to end at 10,582.51, getting a jolt of energy from General Electric and consumer products giant Procter & Gamble. Monday's advance helped the Dow average partially recover from Friday's frightening loss of 617.78 points, a record.


"I don't think the bull market is ready to go away just yet," said Arthur Hogan, chief market analyst at Jefferies & Co. "Everyone came in today on real, real shaky ground and clearly the oversold scenario has been recognized."


The broader market also pushed higher as bonds dropped. The Standard & Poor's 500 index jumped 44.88 points, or 3.31 percent, to 1,401.53, and the Wilshire 5000 index gained 374.44 points, or 3 percent, to close at 12,849.58.


That choppy action is expected to continue this week as Wall Street tests a new, lower trading range amid heightened concern about inflation and strong corporate earnings.


Still, Monday's rally on Wall Street reassured some market players, who said leading stock indexes may have bottomed out already.


Markets could also take some solace from influential Wall Street analyst Abby Joseph Cohen, who was unmoved from her long-term bullish view of equities by last week's market freefall.


In London, the blue-chip FTSE-100 index slipped 3 percent, or 183.5 points, to close at 5,994.6, its lowest settlement in six months. Earlier Monday, the FTSE 100 suffered some savage losses on the heels of Friday's carnage in the U.S. markets and hit a six-month intraday low of 5,915.2 at the start of trading.


"There was no big surprise in the downturn or in the apparent stabilization, but we are not out of the woods yet," said SG Securities equity analyst Andy Hartwill in London.


He predicted that volatility will be the flavor du jour in the London market at least until next month's meeting of the Federal Reserve's policy-makers, who are expected to raise U.S. interest rates again by at least 25 basis points.


Optimists in Europe, however, quickly proclaimed the market declines of last week as a potential buying opportunity.


"I don't believe we are about to see the end of our universe as we know it," said James Montier, investment strategist at brokerage Albert E. Sharp Securities.


A chill wind blew through the global new-issues market, however, delaying some high-profile initial public offerings (IPOs). But other companies carried on with flotation plans.


The litmus test for many European investors Monday was Deutsche Telekom AG's offering of shares in Europe's biggest Internet service provider, T-Online. The shares of T-Online, priced at 27 euros per share, traded as high as 33 euros in their debut on Monday, prompting sighs of relief for the Internet company's parent, Deutsche Telekom, the former telephone monopoly.


Analysts had warned, however, that more downside would be in the works if Wall Street's tumble resumed on Monday. The 30-year U.S. Treasury bond lost 2-6/32, or $21.88 for each $1,000 in face value, as it reeled Monday afternoon from the Nasdaq's rebound. Its yield, which moves in the opposite direction of its price, leaped to 5.94 percent from Friday's close at 5.79 percent.


The dollar slipped to 104.5 yen Monday from 104.75 yen at Friday's close. Against Europe's single currency, the dollar rose to 95.22 cents per euro from 96.19 cents on Friday.