Friday, May 27, 2022

DJIA: 33,212.96, up 575.77
S&P 500: 4,158.24, up 100.40
Nasdaq: 12,131.13, up 390.48

Stocks rally, end historic losing streak

U.S. stocks finished broadly higher on Friday as a relief rally continued. The Dow added 575 points, bringing its five-session advance to 6.2%, while the S&P 500 climbed 2.5%, capping a weekly gain of 6.6%. Their best weekly performance since November 2020 lifted the two benchmarks into positive month-to-date territory. The Dow finally snapped an eight-week losing streak, its worst run since 1923, while the S&P 500 ended a seven-week downturn that had been its longest declining stretch since 2001. The Nasdaq Composite’s 3.3% rally lifted the tech-heavy index 6.8% higher on the week.

Recent strength in Treasuries persisted, with the yield on the 10-year note down one basis point (0.01%) to 2.74%, positioned for a monthly drop of 18 basis points (0.18%). In FOREX trading, a gauge of the U.S. dollar extended recent weakness, suffering its sharpest weekly decline in nearly four months (-1.2%).

On the data front, the core PCE deflator (the Federal Reserve’s preferred proxy for inflation) rose 4.9% year-over-year in April, easing from the previous month’s 5.2% annual gain. Separately, personal spending climbed 0.9% in April, while real personal spending (adjusted for price changes) increased 0.7%, the strongest print in three months. Rounding out the docket, a final May reading from the University of Michigan indicated consumer sentiment fell to a fresh decade-low.

All 11 S&P 500 sectors closed in positive territory, with Consumer Discretionary and Technology shares pacing gains. Ulta Beauty Inc. jumped 11.6% following upbeat results that included a boost to its full-year guidance, while Dell Technologies Inc. surged 12.9% after topping consensus profit and revenue estimates.

Read more about it here.