DJIA: 34,725.47, up 564.69
S&P 500: 4,431.85, up 105.34
Nasdaq: 13,770.57, up 417.79
Stocks whipsawed in turbulent week
U.S. stocks finished a turbulent week on a high note Friday as solid earnings reports helped Tech shares rebound. The major averages notched their best session of the year, with the Dow’s 564-point increase propelling the blue chip index 1.3% higher on the week. The S&P 500 climbed 2.4%, its best day since June 2020, ending in positive territory for the first time in the past four weeks (+0.8%). Still, the broad benchmark remains on course for its worst month since March 2020 (-7% month-to-date). The Nasdaq Composite’s 3.1% rally shockingly left the tech-heavy index unchanged on the week.
Ten of 11 S&P 500 sectors finished in positive territory, with Tech shares leading the advance (+4.3%) on strong earnings. Apple Inc. jumped 7% after delivering record sales despite ongoing supply chain issues. Meanwhile, Visa Inc. surged 10.6% after posting its own record revenue.
Treasuries recovered some of their recent rout, with the yield on the 10-year note down two basis points (0.02%) to 1.79%, though still 28 basis points (0.28%) higher year-to-date. On the data front, personal spending decreased 0.6% last month, the worst reading since February 2021. Separately, the core PCE deflator (the Fed’s preferred proxy for inflation) surged the most since 1983 (+4.9% year-over-year) in December. In commodities, West Texas Intermediate crude settled at $87.15/barrel, capping its sixth straight weekly gain.
Jitters surrounding the Federal Reserve’s (Fed) pivot away from pandemic-era monetary stimulus whipsawed equities this week. On Wednesday, policymakers signaled the first interest rate hike since 2018 would likely come in March, and subsequent hawkish commentary from Fed Chair Jerome Powell only added to market uncertainty.
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