This quick recovery doesn't mean volatility is in the rearview mirror for investors, but the underlying trends still look strong in the back half of 2021, according to Edward Moya, senior market analyst at Oanda.
"The growth story is still there for the third and fourth quarter, and while Wall Street could see a sell-off once we get beyond peak everything (stimulus, earnings, and growth), the S&P 500 index is still likely to finish the year much higher once the dust settles," Moya said in a note to clients.
The S&P 500 closed on Friday up 1.01% and 4,411.79. The Dow rose 238.20 points to close at 35,061.55, while the Nasdaq added 1.04% to finish at 14,836.99.
Looking ahead, earnings reports from major companies including Apple and Amazon will likely drive the market next week, as well as the Federal Reserve's July policy meeting. Another potential story is the debt ceiling, which Treasury Secretary Janet Yellen is pushing for Congress to raise in early August.
