U.S. stocks rose on Friday, ending the S&P 500 three-week losing trend as investors digested recent assurances from Federal Reserve officials that they are committed to reducing inflation.
The S&P 500 was up more than 3%, recording its first weekly early gains and its first day improvement since late May. The S&P 500’s weekly advance of more than 6% also marks its second best date of 2022 to date. The Dow rose more than 800 points, or 2.7%, while the Nasdaq rose more than 3.3% on technical stocks. The key averages maintained profits even after a Meticulously pays attention to consumer sentiments As Americans continued to struggle with high inflation, the new record was revised to a lesser extent. However, the survey also shows that consumers’ one-year inflation expectations have eased from decades of highs.
Three key indices traded active this week, but eventually rose as investors considered the current economic impact of the central bank’s moves to reduce rising prices. Central Bank Chairman Jerome Powell created his post More explicit approval A recession this week was “certainly a possibility” – although not a “projected effect” – the central bank raised interest rates further this year.
“Investors really want the chair to understand that inflation is a significant problem and it’s really good to deal with it in the long run,” said Diane Jaffie, TCW Group’s Group Managing Director and Senior Portfolio Manager. Yahoo Finance Live said on Thursday. “So I think investors are going to do whatever the Fed takes.”
However, Powell’s approval of the current recession risks has increased Warning signals From a Series Wall Street companies have recently raised their own forecasts for the probability of a near-term recession. Powell’s insistence on the central bank Commitment to reduce inflation “unconditional” It also recommended that the central bank not stop raising rates at the first signs of a recession.
Rotating stocks, which were most vulnerable during the fall this week, saw the energy sector record weekly losses and the commodities sector lag behind the S&P 500. West Texas Intermediate crude oil futures were at $ 107 a barrel and recorded its third straight weekly loss. Headed for the first monthly loss since November.
Treasury yields rose steadily across the curve following renewed recession concerns, cutting yields earlier this week. The benchmark yield rose to more than 3.10% from 3.31% at the beginning of the week.
On the move
FedEx (FDX) Shares of the shipping company rose a Full year forecast When it met profit expectations for the fourth quarter of the fiscal year, it surpassed Wall Street estimates. According to Bloomberg, FedEx returns between $ 22.50 and $ 24.50 a year, compared to the $ 22.36 level seen by analysts. FedEx CEO Customer Brie Carere noted in the company’s revenue call on Thursday that they expect consumer shipping volumes to come under some pressure from business next year as consumer spending “tilts from product to service”.
Zendesk’s (Jen) The stock rose on Friday After the company announced, it reached an agreement to be taken privately by a group of investors Including Hellman & Friedman and Fermira. All monetary transactions are valued at about $ 10.2 billion for the software company and will pay Zendesk shareholders $ 77.50 per share. This is about a 34% premium compared to Zendesk’s closing level on Thursday.
Carmax (KMX) The stock then advanced The used vehicle seller released the first quarter results That exceeded expectations. According to Bloomberg data, earnings per share of $ 9.31 billion are higher than estimates at $ 1.56, $ 1.51 per share and $ 8.99 billion. Used used car retail sales fell 11% from a year earlier, however, Carmex said, adding that “as a result of the stimulus paid in the previous year, widespread inflationary pressures, including vehicle control challenges, are declining; consumer confidence.”
Emily McCormick is a Yahoo Finance correspondent. Follow her on Twitter.
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