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NEW YORK - US stocks rebounded this morning (NZ time) as hard-hit financial shares recovered on the view that fears of the subprime mortgage problem spreading were overblown and had left stocks looking cheap.
A rise in oil prices led to broad gains among energy shares, sending Exxon Mobil up 1.6 per cent. That helped benchmark indexes bounce back from steep early losses in a session typical of the market's recent volatility.
Most notable were resurgent mortgage lenders, investment banks and home builders, the sectors hit the hardest in the previous session's sell-off, the second worst of the year.
"The mortgage lenders, home builders and related financials are getting a rebound from yesterday's carnage," said Rick Campagna, a portfolio manager with Provident Investment Council in Pasadena, California. "It's a relief rally within the ongoing correction."
The Dow Jones industrial average was up 57.44 points, or 0.48 per cent, to end at 12,133.40. The Standard & Poor's 500 Index finished up 9.22 points, or 0.67 per cent, at 1,387.17. The Nasdaq Composite Index ended up 21.17 points, or 0.90 per cent, at 2,371.74.
- REUTERS
