Stocks rally, driving Wall Street to a rare winning week
Stocks racked up more gains on Wall Street Friday, as the S&P 500 had its best day in two years and just its second winning week in the last 12 to provide a bit of relief from the market's brutal sell-off this year.
The benchmark index rose 3.1%, with technology and banks leading the broad rally. The S&P 500 notched a 6.4% gain for the week, erasing the brutal loss it took a week earlier, though it’s still close to 20% below its record set early this year.
The Dow Jones Industrial Average rose 2.7% and the tech-heavy Nasdaq ended 3.3% higher. Both indexes also posted a weekly gain that more than made up for their losses last week.
Stocks rallied this week as pressure from rising Treasury yields lets up somewhat and investors speculate the Federal Reserve may not have to be as aggressive about raising interest rates as earlier thought as it fights to control inflation.
The gains are a reprieve from Wall Street’s tumble through most of the year, caused by the Fed's and other central banks' slamming into reverse on the tremendous support fed into markets through the pandemic. In hopes of beating down punishingly high inflation, central banks have raised interest rates and made other moves that hurt prices for investments and threaten to slow the economy enough to cause a recession. More such moves are sure to come.
“It has been a good week,” said Randy Frederick, managing director of trading & derivatives at Charles Schwab. “It’s rare. At least in 2022, we’ve had only a couple of weeks where we ended up net positive. It looks pretty similar to what we saw right around the end of May, and that one of course fizzled out.”
The S&P 500 rose 116.01 points to 3,911.74. The Dow climbed 823.32 points to 31,500.68. The Nasdaq rose 375.43 points to 11,607.62.
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