Stock market opens strong the day after Dow tanked more than 1,000 points
iStock/Thinkstock(NEW YORK) — The Dow Jones Industrial Average opened strong on Friday, rallying more than 300 points less than 24 hours after tanking 1,032 points.
The other major indices were also trading higher. The S&P 500 climbed more than 30 points out of the gate — a 1.2 percent jump — and the Nasdaq spiked 105 points at the start of the trading day, a 1.5 percent increase.
The U.S. stock market’s strong opening came after the Asian and European markets both closed in negative territory. Japan’s Nikkei 225 fell 508 points, or 2.32 percent, to 21,382. China’s Shanghai composite sank 4.02 percent to 3,130. The Pan-European STOXX 600 was off .70 percent, and Britain’s FTSE was down 34 points, or .49 percent.
“I’m not ready to call the bottom,” Randy Frederick, vice president of trading and derivatives for Charles Schwab, told ABC News at the close of the market on Thursday.
“I always tell people it’s best to wait until you get an ease back in volatility and you get two good, solid days. We haven’t had that. We had one solid up day, and the second day looked like it might be an up day and then it sold off into the close. I didn’t know it would be this bad today, but clearly it’s not over.”
He said both the Dow and the S&P 500 have pulled back more than 10 percent since hitting record highs last month. On Jan. 26, the Dow soared to 26,616 and S&P 500 touched 2,872.
“The Dow Jones and the S&P 500 have dipped below a 10 percent pullback from the high. So, that’s a full market correction now,” Frederick said.
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