Wall Street Rebounds For Second Day After Ukraine Shock

U.S. stocks jumped for a second day on Friday with the Dow up more than 2% in afternoon trading, rebounding from the recent sharp selloff leading up to Russia's invasion of Ukraine.

Oil prices fell back below $100 a barrel, easing some concerns about higher energy costs.

Russian missiles pounded Kyiv and families cowered in shelters on Friday, a day after Russia unleashed a three-pronged invasion of Ukraine in the biggest attack on a European state since World War Two.

Investors also are assessing news that Russian President Vladimir Putin told his Chinese counterpart Xi Jinping in a call that Russia was willing to hold high-level talks with Ukraine, according to China's foreign ministry.

Some strategists say stock-selling may have been overdone. The S&P 500 confirmed earlier this week it was in a correction when it ended down more than 10% from its Jan. 3 record closing high.

"It sure feels a lot more like we've really exhausted sentiment in this correction," said Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis, noting that economic fundamentals and corporate health remain favorable.

All 11 of the S&P 500 sectors were higher.

The Dow Jones Industrial Average rose 808.95 points, or 2.43%, to 34,032.78, the S&P 500 gained 90.1 points, or 2.10%, to 4,378.8 and the Nasdaq Composite added 173.29 points, or 1.29%, to 13,646.87.

On Thursday, stocks rose after the West unveiled new sanctions on Russia.

Some strategists noted that the sanctions targeted its banks but left its energy sector largely untouched.

Johnson & Johnson climbed 5% after a U.S. judge ruled that the drugmaker's subsidiary can remain in bankruptcy, preventing plaintiffs from pursuing 38,000 lawsuits against the company alleging its baby powder and other talc products cause cancer.