Dow leaps nearly 400 points Friday, major averages notch a second week of gains: Live updates

Stocks rallied Friday, recovering the ground lost in the previous session, as Treasury yields stabilized.

The Dow Jones Industrial Average advanced 391.16 points, or 1.15% to close at 34,283.10. The S&P 500 climbed 1.56% to finish the session at 4,415.24. The Nasdaq Composite added 2.05% to 13,798.11, notching its best day since May.

Friday’s surge was also enough to lift the three major averages for a second consecutive week of gains. The S&P 500 advanced 1.3%, while the Dow added about 0.7%. The Nasdaq was the outperformer, rising roughly 2.4% on the week.

Stocks staged a rebound after higher bond yields cued a sell-off on Thursday, and snapped the longest winning streaks for the S&P 500 and the Nasdaq Composite in two years.

On Friday, the benchmark 10-year Treasury yield hovered around the flatline after jumping more than 10 basis points Thursday. A Treasury Department bond auction — and comments from Federal Reserve Chair Jerome Powell about the possibility that more intervention could be needed to quell inflation — sparked the move higher in yields a day earlier.

Still, the economy remains more resilient than expected. This has helped equities despite uncertainty around when the Fed might be done cutting rates, according to UBS.

“A continued high level of unfilled job openings and solid private sector balance sheets support our view for a ‘softish’ economic landing,” UBS head of U.S. equities David Lefkowitz wrote in in a Friday note. “Still, economic growth will likely slow in the months ahead and further improvements in inflation will probably be more incremental.”