DJIA: 32,196.66, up 466.36
S&P 500: 4,023.89, up 93.81
Nasdaq: 11,805.00, up 434.04
Stocks stage relief rally, trim weekly drop
U.S. stocks staged a relief rally on Friday, consolidating amid a downbeat week. As has been the case lately, the bounce was widely attributed to oversold conditions after the S&P 500 yesterday came within a hair’s breadth of bear market territory (defined as a 20% drawdown from a recent peak). The Dow added 466 points to snap a six-day losing streak. The blue chip index pared its five-session decline to 2.1%, but still weathered its seventh straight weekly drop—its worst such stretch since 2001. The S&P 500 climbed 2.4%, while the Nasdaq Composite rallied 3.8%. Still, both benchmarks logged a sixth consecutive weekly slide (-2.4% and -2.8%, respectively), something the S&P 500 has not suffered since June 2011.
Comments from Federal Reserve chair Jerome Powell seemed to aid risk sentiment. He reiterated that the U.S. central bank would likely raise rates by 0.50% in both the upcoming June and July meetings, and echoed earlier remarks that a 0.75% increase was not being “actively considered.” Treasuries trimmed their weekly advance, with the 10-year note yield rising for the first time in five sessions, up seven basis points (0.07%) to 2.94%.
All 11 S&P 500 sectors climbed more than 1%, with the Consumer Discretionary group pacing the gains. U.S.-based casinos with operations in Macau outperformed as strict covid restrictions in Shanghai were set to ease. In other corporate news, Twitter Inc. shed 9.7% after Elon Musk stated his $44 billion takeover is “temporarily on hold,” though noted that he is “still committed” to the deal.
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