By Riva Gold and Corrie Driebusch

U.S. stocks pared gains as Donald Trump addressed the nation after being sworn in as president of the U.S.

In recent trading the Dow industrials were up 54 points, or 0.3%, at 19787. The S&P 500 and Nasdaq Composite gained 0.2% in recent trading.

Ahead of Mr. Trump's remarks, the Dow Jones Industrial Average was up 98 points. The blue-chip index pared gains to an increase of 39 points during the speech and stock-trading volume spiked.

Mr. Trump's speech said his administration will follow "two simple rules; buy American and hire American." It also promised new roads, bridges and highways.

The 10-year U.S. Treasury yield was 2.491% Friday compared with 2.500% ahead of Mr. Trump's speech and 2.461% Thursday, when expectations for higher U.S. rates after a speech by Federal Reserve Chairwoman Janet Yellen sent it to its biggest daily jump of the year. Yields move inversely to prices.

During Mr. Trump's speech yields dipped to 2.483%.

The reaction to the speech highlights how stocks and bonds have swung on comments from the new president. This market choppiness is likely to continue in the coming weeks and months, investors and analysts said.

"We're going to see high intraday volatility on off-the-cuff remarks," said Tom Digenan, head of U.S. equities at UBS Global Asset Management. "We don't know how onerous protectionist measures will be, what the tax rate will be or what deregulation we'll get."

Since the November election, investors have broadlybought the dollar and U.S. stocks and sold long-dated government bonds on expectations for tax cuts, spending increases and rolled-back regulation.

In the trading sessions leading up to Mr. Trump's inauguration, however, some popular trades have waned.

The Dow industrials on Thursday erased its gains this year in its fifth consecutive session of losses. Part of the reason for the reversal: a pullback in big bank stocks.

Financials, the best-performing S&P 500 sector from Election Day to year-end, lost ground in the past week as investors pulled money out of the sector. On Friday, financials gained back a bit, up 0.4% in recent trading, but the sector is still on track to end the week down 1.8% and is now down 0.7% in 2017.

Financial sector stock funds snapped a 16-week streak of inflows and industrial sector funds posted their biggest outflow since 2015, according to fund-tracker EPFR Global, reversing popular trends thatfollowed the November election.

Flows into gold funds hit a 10-week high. On Friday, the price of gold rose 0.3% to $1205.10 an ounce. So far this month gold prices have risen more than 4%.

The WSJ Dollar Index was last down less than 0.1%.

"We've got many generalities and not many specifics as far as policies," said Jon Adams, investment strategist at BMO Global Asset Management.

New details or a timeline on taxation and infrastructure spending plans would be supportive of a further move higher for stocks, he said, while possible changes to immigration and trade policy changes pose risks to the market.

On Friday, the Dow resumed its climb, lifted in part by shares of Procter & Gamble, which rose 2.6% after reporting a smaller-than-expected fall in sales.

In other corporate news, American Express fell 0.6% after posting lower fourth-quarter results. General Electric declined 1.9% after the industrial giant'srevenue fell more than expected.

Elsewhere, the Stoxx Europe 600 slipped 0.1% as a steep climb in government bond yields lifted bank shares but weighed on steady dividend-payers. Advances in the financial sector were offset by a decline in real-estate and health-care shares, leaving the pan-European index flat in afternoon trading.

"If rates move up, financials are really the only sector where you get traction and support for earnings growth," said Mr. Foliot.

In a speech Thursday, Ms. Yellen signaled a gradual course for interest-rate rises, noting she doesn't see the U.S. economy at risk of overheating and doesn't expect growth to pick up much soon. Ms. Yellen had said Wednesday that rates could be raised "a few times a year" through 2019.

Separately, Mr. Trump's pick for Treasury secretary, Steven Mnuchin reaffirmed the strength of the dollar Thursday following comments from Mr. Trump earlier in the week that it was "too strong."

In commodities, U.S.-traded crude oil rose 2.4% to $53.37 a barrel amid signs of waning OPEC production.

Write to Riva Gold at riva.gold@wsj.com and Corrie Driebusch at corrie.driebusch@wsj.com

(END) Dow Jones Newswires

January 20, 2017 13:14 ET (18:14 GMT)

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