Stocks surged into the close of trading on Friday, with major North American indexes snapping a vicious losing streak that had generated the biggest losses since the start of the rebound in March 2009.
The Dow Jones industrial average closed at 10,193.39, up 125.38 points or 1.3 per cent. The broader S&P 500 closed at 1087.69, up 16.10 points or 1.5 per cent - its first gain in four days after falling into official correction territory during Thursday's rout.
In Canada, the S&P/TSX composite index closed at 11,521.35, up 115.40 points or 1 per cent. The gains followed a six-day losing streak that had seen the index shed more than 680 points or 5.6 per cent.
Although Thursday's losses were remarkably broad-based, with all Dow members and 99 per cent of the S&P 500 ending the day lower, Friday's rebound was considerably more selective, and arrived only after a steep selloff at the start of the day.
Two stocks within the Dow were left behind, with Microsoft Corp. and AT&T Inc. both declining. Within the S&P 500, 12 per cent of stocks declined.
Indeed, the rebound - which actually erased about half of Thursday's losses - rewarded cyclical stocks far more than defensive stocks. Financials were the biggest winners, with investors relieved over the contents of the U.S. overhaul regulations. JPMorgan Chase & Co. rose 5.9 per cent and Bank of America Corp. rose 4.5 per cent.
In Canada, industrials and energy stocks led the way, with Canadian Pacific Railway Ltd. up 2.7 per cent and Suncor Energy Inc. up 2.4 per cent. The price of crude oil rebounded above $70 (U.S.) a barrel, after trading as low as $68 on Thursday.
Despite Friday's upward moves, the move for the week was still down. The Dow fell 4 per cent, the S&P 500 fell 4.2 per cent and the S&P/TSX composite index fell 4.1 per cent.