The Dow Jones Industrial Average rose more than 800 points on Friday, rebounding from last week’s bear market lows and holding back the first weekly rise since May.
The Dow rose 823.32 points (2.68%) to 31,500.68, accelerating in the last hour of the transaction. The S & P 500 was up 3.06% to 3,911.74. The Nasdaq Composite Index rose 3.34% to 11,607.62.
The key average ended a big comeback week for equities. The S & P 500 rose nearly 6.5% in a week, while the Nasdaq Composite index rose 7.5%. The Dow is 5.4% higher.
Those movements continued Worst weekly decline in S & P 500 since 2020.. Last week, the broader market index fell 5.8% that week.
All three major averages lost a three-week streak as market participants considered whether the market had bottomed out. Still, much of Wall Street maintained a dark outlook.
“We believe the backlash in the US stock market over the past three days is a recovery of the bear market from an oversold situation,” Wolf Research’s Chris Senjek said in a Friday memo.
“Although there may be additional short-term follow-throughs, we believe the medium-term bearish base case remains and the next legdown will be driven by increased recession risk and downward earnings revisions.” Said Senjek.
Major averages jumped after consumer sentiment measurements, which are closely followed by the Federal Reserve, showed a slight easing of inflation expectations.
Consumer sentiment Hit a record low of 50 in JuneAccording to the final reading of a University of Michigan survey released Friday morning. On the surface, it’s not a positive for the market, but investors liked the numbers in the report showing that consumer expectations of 12-month inflation have returned to 5.3%.
Preliminary readings earlier this month, which were crucial in influencing the Fed to become more aggressive with rate hikes, showed inflation expectations of 5.4%.
Terry Sandven, Chief Equity Strategist at US Bank Wealth Management, said: “Consumers pay for” experiences “such as travel, leisure, beauty items, and household items. Rising inflation, especially rising food and energy costs, is one of the widely expected headwinds to put pressure on discretionary spending in the short term. “”
The rally was widespread: all 11 sectors were up for the day.
Cruise line inventories drove the rise in the S & P 500.Carnival Corporation shares subsequently rose 12.4% Reserved volume In the most recent quarter, the first quarter was “almost doubled.” In other words, “the number of quarterly reservations has been the highest since the pandemic began.”
The Royal Caribbean Group surged about 15.8%. Norwegian Cruise Line Holdings shares rose nearly 15.4%.
The financial sector was a notable uptrend, rising 3.8% in the broader market index. After the Federal Reserve released the results of its annual “stress test,” stocks in some of the country’s largest banks rose.Central Bank Said Companies such as Wells Fargo have a strong capital pool to survive a severe recession.
Wells Fargo’s share price surged nearly 7.6%. Capital One surged 5.6%.
FedEx’s share surged about 7.2%, despite mixed fourth-quarter reports after logistics companies released bright earnings forecasts.
Dow concludes big stock comeback week by collecting 800 points on Friday
Source link Dow concludes big stock comeback week by collecting 800 points on Friday