Stocks rose for a fourth day in a row Friday, closing out their biggest weekly gain since November 2020. The S&P 500 added 1.2%, bringing its weekly gain to 6.2%. The Nasdaq climbed 2.1% and the Dow Jones Industrial Average rose 0.8%.
Investors have welcomed the long-expected pivot from the Federal Reserve from stimulating the economy to fighting inflation, which began this week with its first interest rate increase since 2018.
The price of oil remains above $100 a barrel as investors monitor the ongoing Russian invasion of Ukraine. The yield on the 10-year Treasury note fell to 2.15%.
Technology and communication stocks, retailers, automakers and other companies that rely on consumer spending helped lift the market. Chipmaker Nvidia climbed 5.8%, Facebook parent Meta rose 2.7% and Tesla was 2.8% higher.
Those gains were being kept in check by declines in utilities, industrials and other sectors.
Bond yields fell. The yield on the 10-year Treasury slipped to 2.15% from 2.19% late Thursday.
The broader market has been volatile over the last few weeks as investors consider a number of concerns including inflation and Russia's invasion of Ukraine. Major indexes are down for the year in a sharp reversal from solid gains over the last several years.
“That macro picture is not going to change, it’s going to take weeks and months,” said Jason Draho, head of asset allocation for the Americas at UBS Global Wealth Management. “Nothing in the past few days is going to alter that."
The ongoing war in Ukraine continues to drive sentiment after Ukrainian President Volodymyr Zelenskyy called for more help for his country after days of bombardment of civilian sites. Wall Street is also still concerned about rising interest rates, along with surging COVID-19 cases in China and Europe.
Russia's invasion Ukraine has weighed heavily on markets as investors try to gauge how the conflict could impact global economic growth. Markets in Europe have been particularly sensitive to the war and were mostly lower on Friday. Oil prices have been extremely volatile and U.S. benchmark crude oil remains above $100. Energy prices were relatively stable on Friday.
The high energy prices are only adding to worries about inflation and whether the squeeze on consumers will eventually crimp spending and economic growth.
High inflation has prompted central banks to rethink their low interest-rate policies. The Bank of England has been one of the most aggressive, and it raised its key interest rate on Thursday for the third time since December.
The Federal Reserve announced a 0.25% increase on its key interest rate this week. It is the first rate hike since 2018 and is expected to be followed by more this year as the Fed tries to tame inflation.
Several stocks were making big moves after releasing their latest financial results and updates. FedEx fell 5.1% after its fiscal third-quarter earnings fell short of Wall Street forecasts. U.S. Steel slid 7.7% after giving investors a disappointing profit forecast.
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