All three of the major averages continued their rally on Friday, hitting their highs into the close and ending their weekslong losing streaks. The Dow Jones Industrial Average and S&P 500 finished their best week since November 2020. The Dow ended the week up 6.2%, after eight straight down weeks, its longest losing streak since 1923. The S&P 500 and Nasdaq Composite both ended seven consecutive weeks of losses.
Retail earnings and tech stocks continued to drive the market action, with Ulta Beauty and Autodesk among the top performers. After what appeared to be a dubious start to the trading session Friday, key inflation data put stocks back in the green, where they remained for the rest of the day.
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Equities have also benefited from a drop in the benchmark 10-year U.S. Treasury yield, which has fallen from a high earlier in the year of above 3% to below 2.75% this week.
Investors cheered the rally but remained apprehensive about its longevity. While some are tempering expectations and calling it a bear market bounce, others are hopeful inflation may be peaking or recession fears have been overblown.
Despite Friday’s gains, the major averages are still well off their highs. The Dow sits about 10% from its record. The S&P 500, which has come far from last week when it briefly dipped into a bear market, is now just 13.7% from its high. The Nasdaq, still deep in a bear market, is 25% below its record. |
