Dow Jones jumps 387 points as Wall Street rallies

NEW YORK, New York — A softening in U.S. Treasury yields boosted buying on Wall Street Friday with all the key indicves making solid gains.

The 10-year Treasury yield dropped below the crucial 4 percent level. "The stock market is very sensitive to bond yields at this point and looking for some respite to the recent upward moves in yields," Yung-Yu Ma, BMO Wealth Management chief investment strategist told CNBC Friday.

"There’s a nervous anticipation to upcoming data releases for jobs and inflation after the difficult readings last month. The market is unlikely to have sustained traction until data points resume a cooling trend," Ma added.

The Nasdaq Composite surged 226.02 points or 1.97 percent to finish Friday at 11,689.01.

The Dow Jones industrials rallied 387.40 points or 1.17 percent to 33,390.97.

The Standard and Poor’s 500 climbed 64.29 points or 1.61 percent to 4,045.64.

In the forex market on Friday, the U.S. dollar surprisingly lost ground.

The euro jumped to 1.0634, up 0.36 percent. Meanwhile, the Japanese yen finished around 135.84, ahead 0.67 percent or 0.91. The U.S. dollar also fell against the Swiss franc, with the USD/CHF pair closing at 0.9361, down 0.66 percent or 0.0062.

On the other hand, the U.S. dollar was able to hold its ground against the Canadian dollar, with the USD/CAD pair closing at 1.3594, down just 0.02 percent or 0.00022. Similarly, the New Zealand dollar only saw a small increase against the U.S. dollar, with the NZD/USD pair closing at 0.6222, up 0.08 percent or 0.0005.

The biggest mover of the day was the GBP/USD pair, which closed at 1.2041, up 0.82 percent or 0.0098.

Global stock markets showed a mixed picture on Friday, with some indices ending the day in positive territory while others closed lower.

The ESTX 50 PR.EUR closed at 4,294.80, up 1.28 percent or 54.21 points. The Euronext 100 Index closed at 1,365.25, up 0.79 percent or 10.74 points.

The BEL 20 ended at 3,885.05, up 0.74% or 28.66 points. The MOEX Russia Index ended at 2,222.51, down 0.19 percent or 4.14 points.

In London, the FTSE 100 index finished the day at 7,947.11 points, up 3.07 points or 0.04 percent.

In Paris, the CAC 40 index closed at 7,348.12 points, up 63.90 points or 0.88 percent. Meanwhile, Germany’s Dax ended the day at 15,578.39 points, ahead 250.75 points or 1.64 percent.

In Asia, Japan’s Nikkei 225 index rose by 428.60 points or 1.56 percent to end the day at 27,927.47 points, while the Hang Seng Index in Hong Kong closed at 20,567.54 points, up 138.08 points or 0.68 percent.

China’s Shanghai Composite gained 17.74 points or 0.54 percent to 3,328.39.

The Singapore Straits Times dipped 2.88 points or 0.09 percent to 3,232.02.

The Australian All Ordinaries garnered 24.00 points or 0.32 percent to close Friday at 7,484.00.

The S&P/ASX 200 closed at 7,283.60, up 0.39 percent or 28.20 points.

New Zealand’s S&P/NZX 50 declined 32.07 points or 0.27 percent to 11,868.79.

The S&P BSE SENSEX gained 1.53 percent or 899.62 points, closing at 59,808.97.

The IDX COMPOSITE closed at 6,813.64, down 0.64 percent or 43.78 points.

The KOSPI Composite Index in South Korea closed at 2,432.07 points, up just 4.22 points or 0.17 percent.

Overall, investors remained cautiously optimistic as concerns over rising bond yields and inflation continued to weigh on markets.