Wall Street climbs but still headed for worst week in months

U.S stocks are on the rebound Friday, led by companies that would benefit the most from a healthier economy, as Wall Street claws back some of its sharp losses from earlier in the week.

The S&P 500 was 1.1% higher, as of 2:45 p.m. Eastern time, though trading was again choppy. The index swung between a gain of 1.4% and a loss of 0.6% earlier in the day.

The Dow Jones Industrial Average was up 1.4%, and the Nasdaq composite was 0.7% higher.

Merck helped pace the market and leaped 9.6% after it said its experimental pill to treat COVID-19 cut hospitalizations and deaths by half. Prospects for an additional tool to tame the pandemic helped lift shares of airlines, hotels and other companies hurt by restrictions on travel and other activites.

United Airlines soared 7.3%, casino owner Caesars Entertainment swept 5.5% higher and Live Nation Entertainment jumped 8.1%.

The market's widespread gains weren't enough to make up for a dismal last few days. The S&P 500 remains on track for a weekly loss of 2.3%, which would be its it worst since February. A swift rise in interest rates earlier this week rattled the market and forced a reassessment of whether stocks had grown too expensive, particularly the most popular ones.

On Friday, the yield on the 10-year Treasury fell back to 1.47% from 1.52% late Thursday. That's still well above its perch of 1.32% from a week and a half ago.

September was also the worst month for the S&P 500 since March 2020, when markets plunged as COVID-19 shutdowns took hold. Among the worries that have weighed on the market: The Federal Reserve is close to letting off the accelerator on its support for markets, economic data has recently been mixed following an upturn in COVID-19 infections, corporate tax rates may be set to rise and...