·         Dow jumps 300 points as market stages a strong comeback from biggest sell-off in 3 months

U.S. stocks jumped on Thursday, roaring back from a sharp sell-off on Wall Street that saw the S&P 500 and the Dow Jones Industrial Average suffer their worst drop in three months.

The S&P 500 rose 0.98%, while the blue-chip Dow gained 300.19 points, or 0.99%, boosted by Disney, Intel and American Express. The tech-heavy Nasdaq Composite climbed 0.5%.

All 11 S&P 500 sectors closed in the green amid the broad market rally. Financials and materials — cyclical sectors sensitive to an economic recovery — jumped 1.9% and 1.8%, respectively. Industrials and health care also led the strong gains.

The market suffered steep declines in the previous session, with the S&P 500 and the Dow posting their biggest one-day decline since October, as the speculative buying frenzy in heavily shorted stocks kept investors on edge. Some feared that hedge funds being squeezed could be forced to reduce their equity holdings to raise cash. Others called it a sign of a bubble forming in the market.

On the data front, gross domestic product increased at a 4.0% pace in the fourth quarter, slightly below the 4.3% expectation from economists surveyed by Dow Jones.

The number of first-time filers for unemployment benefits rose less than expected last week. Jobless claims totaled 847,000 for the week ended Jan. 23, the Labor Department reported Thursday. Economists polled by Dow Jones had expected first-time claims to total 875,000.

·         Stocks in Asia-Pacific rose in Friday morning trade after shares stateside saw an overnight bounce from heavy losses suffered on Wednesday.

Japan’s Nikkei 225 advanced 0.29% in early trade while the Topix index rose 0.17%. South Korea’s Kospi gained 0.78%.

Shares in Australia rose in morning trade, with the S&P/ASX 200 up 0.87%.

MSCI’s broadest index of Asia-Pacific shares traded 0.33% higher.

On the coronavirus front, biotech firm Novavax said that its vaccine was more than 89% effective in protecting against Covid-19.

Reference: CNBC