The Dow surged 800 points on Friday, posting a fourth straight week of gains

Shares of Amazon rose on Friday despite a slide in shares after economic data pointed to slowing inflation and steady consumer spending.

The Dow Jones industrial average closed up 828.52 points, or about 2.6%, at 32,861.80. The S&P 500 added nearly 2.5% to close at 3,901.06. The Nasdaq Composite rose 2.9% to close at 11,102.45.

On a weekly basis, major indices posted significant gains. It was the fourth positive week in a row for the Dow after a five-week streak ending in November 2021. The 30-share index rose 5.7% this week, its best performance since May. It is on track for its best month since January 1976.

The S&P 500 and Nasdaq rose 3.9% and 2.2%, respectively, for the week.

The stock market rallied this week as investors dumped tech stocks following weak results and outlooks from Microsoft, Alphabet and Meta, turning to economically sensitive stocks that could benefit if the U.S. economy avoids a recession.

At the same time, investors found confidence in data released this week that showed inflation easing, boosting hopes that the Federal Reserve could break from its course of 75 basis rate hikes after its November meeting.

“The inflation data wasn’t really bad. Earnings weren’t great, but not bad,” said Megan Hornman, chief investment officer at Verdens. “When you’re in the middle of the road, that helps the stock markets.”

Amazon fell 6.8% after the company disclosed Weaker-than-expected quarterly earnings And disappointing fourth-quarter sales guidance was released Thursday. Apple shares rose 7.5% on Friday. Technology Institute Report iPhone revenue was weaker than expected on Thursday, but beat Wall Street estimates for quarterly revenue and earnings.

See also  Canelo Alvarez Completes Trilogy With Gennady Golovkin With Unanimous Decision Victory

Other positive performers, such as Apple and Intel, have given investors a foothold in what they see as a particularly volatile technology sector, and subsequently put upward pressure on the tech-heavy Nasdaq, said Jay Hatfield, CEO of Infrastructure Capital Management. He said oil majors Chevron and ExxonMobil lifted the market, rising 1.2% and 2.9% respectively.

“Apple is really the lone star, if you will, among megacap tech stocks,” Hatfield said. “It’s a unique market where the bad is terrible, but the OK is good, so, in relative terms, it’s spectacular.”

After that the market took off Core Personal Consumption Expenditures Price Index September was up 0.5% from the previous month and 5.1% from a year ago. It is the Federal Reserve’s preferred measure of inflation. Personal spending rose 0.6%, more than expected, the data showed.

Read today’s market coverage in Spanish here.

Leave a Reply

Your email address will not be published.