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March 25 (UPI) — U.S. markets reversed early losses on Thursday to snap a two-day losing streak as stocks that would benefit from the widespread lifting of COVID-19 restrictions rallied.

The Dow Jones Industrial Average closed up 199.42 points, or 0.62%, after falling as much as 348 points earlier in the day. The S&P 500 gained 0.52% and the Nasdaq Composite grew 0.16%.


Airline and cruise line stocks led the way Thursday as American Airlines gained 4.4% and United climbed 4.12%, while Carnival increased 3.98% and Norwegian Cruise Line closed up 2.88%. Aircraft manufacturer Boeing also gained 3.25%.

Markets fell early in the day after Federal Reserve Chairman Jerome Powell told NPR that the central bank would slowly roll back economic stimulus related to the pandemic.

“As we make substantial further progress toward our goals, we’ll gradually roll back the amount of Treasury and mortgage-backed securities we’ve bought,” Powell said. “We will very gradually over time and with great transparency, when the economy has all but fully recovered, we will be pulling back the support that we provided during emergency times.”

The 10-year Treasury yield also briefly fell below 1.6% before settling at 1.62%.

“We think long-term bond yields are just in a pit stop here in what’s going to be a multi-year move higher,” JPMorgan global market strategist Gabriela Santos told Yahoo Finance. “Ultimately, we do continue to think that it will harm the more speculative or expensive parts of the market like tech and really benefit the more cyclical [sectors] and especially the parts of the market that can benefit from a steepening yield curve.”

All three major averages remain on track to end the week with losses with the S&P 500 and Dow each falling 1% and the Nasdaq dropping 2%.

Tech stocks have struggled in March, falling from their boom amid the pandemic with Netflix dropping 6.8%, Tesla falling 6% and Zoom declining 16%.

“The weakness in technology stocks is undeniable but it likely won’t be a straight line down for the sector and there will be zigs and zags along the way,” David Bahnsen, chief investment officer at The Bahnsen Group, told CNBC. “Tech stock valuations are too high and are screaming for a correction.”