© Reuters. ARCHIVE PHOTO: A Wall Street Sign Shown Outside the New York Stock Exchange in New York, October 28, 2013. REUTERS / Carlo Allegri
By Stephen Culp
NEW YORK (Reuters) – Wall Street rose higher on Friday to end the rise, closing the book with a week of wild market movements as relief from signs of peak inflation competed with fears that the tightening of Federal Reserve policy could tip the economy into recession.
Earnings were led by a rebound in technology stocks adjacent to megacap technology, which sold in recent sessions as Treasury benchmark yields rose and investors feared the Fed could raise interest rates. interest more aggressively than expected.
Despite the day’s gains, the Nasdaq and Nasdaq recorded their sixth consecutive weekly loss, the longest loss streak since the fall of 2012 for the S&P 500 and since the spring of 2011 for the Nasdaq.
The Dow recorded its seventh consecutive weekly drop, the longest average loss of the blue-chip average since the late winter of 1980.
“Is it a dead cat bounce? Or is it an acknowledgment by investors, as I think, that the sale is exaggerated?” said Oliver Pursche, senior vice president of Wealthspire Advisors in New York.
“I wouldn’t be surprised if we see one or two more weeks down, but we need to look beyond the indices and see the fundamentals of the market,” Pursche added. “And what we’re seeing today is that some of the defeated quality names are bouncing hard.”
In the last six days of negotiations, the Department of Labor released four economic reports (wage growth, CPI, PPI and import prices) which, together, suggested that inflation had reached its peak in March, a good news for market participants worried the Fed could trigger a recession. of rising interest rates to combat inflation.
Fed Chairman Jerome Powell, confirmed Thursday by the U.S. Senate for a second term, reiterated the central bank’s determination to fight inflation, but said he believes the economy can avoid a serious crisis.
Powell “showed humility and seriousness at the same time,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. “He promises to control this inflation, even if he admits it will be a little painful.”
It rose 466.36 points, or 1.47%, to 32,196.66, the S&P 500 gained 93.81 points, or 2.39%, to 4,023.89, and 434.04 points added. , or 3.82%, to 11,805.00.
The 11 major sectors of the S&P 500 closed the session in green, with discretionary consumer stocks enjoying the highest percentage gain, up 4.1%.
The first quarter reporting season has reached its final stretch, with 458 S&P 500 companies reporting. Of these, 78% have given consensus results, according to Refinitiv.
For the first three months of the year, analysts now see aggregate year-on-year growth in S&P 500 earnings of 11.1%, up from 6.4% at the end of the quarter, by Refinitiv.
Actions of Twitter Inc. (NYSE 🙂 fell 9.7% after Elon Musk tweeted that he had suspended the $ 44 billion cash purchase deal, while waiting for the social media company to provide data on fake accounts.
Tesla (NASDAQ 🙂 Inc. rose 5.7%.
Trading platform Robinhood Markets Inc. (NASDAQ 🙂 rose 24.9% after Samuel Bankman-Fried, CEO and founder of FTX cryptocurrency exchange, revealed a 7.6% stake in the brokerage firm.
Warren Buffett’s Berkshire Hathaway (NYSE 🙂 revealed the purchase of more shares in Western Petroleum (NYSE :), bringing the oil company’s shares up 8.2%.
Advanced issues outnumbered those that fell on the NYSE by 3.73 to 1; on the Nasdaq, a ratio of 2.91 to 1 favored the advanced.
The S&P 500 hit a new 52-week high and 30 new lows; the Nasdaq Composite recorded 10 new highs and 279 new lows.
US stock market volume was 13.32 billion shares, compared to an average of 13.17 billion in the last 20 trading days.