US stock indexes gain in midday trading, recovering from a sell-off Friday; GM up on buyback

NEW YORK, N.Y. – Stocks are rising after a big sell-off late last week as investors worried about higher interest rates.

The market had slumped on Friday after a strong jobs report boosted expectations that the Federal Reserve would raise rates this summer.

General Motors gained 3 per cent after announcing a $5 billion stock buyback to appease an activist investor.

The Standard & Poor’s 500 index rose seven points, or 0.4 per cent, to 2,078 as of 11:45 a.m. Eastern time Monday.

The Dow Jones industrial average climbed 138 points, or 0.8 per cent, to 17,994. The Nasdaq composite rose six points, or 0.1 per cent, to 4,933.

Bond prices rose, pushing yields lower. The yield on the 10-year Treasury note fell to 2.20 per cent from 2.25 per cent late Friday.