Rising stocks on Wall Street key indices led a rebound on Friday over the weekend amid concerns over a growing outlook for economic growth, while Twitter sank after Elon Musk withheld his deal for the social media company.
All 11 major S&P sectors advanced in early trade, with technology and consumer discretionary stocks up 2.7% and 3.3%, respectively.
Growth stocks such as Apple Inc, Google-owned Alphabet Inc, Amazon.com and Nvidia Corp have risen between 2.2% and 6.5% after falling for most of the week.
Wall Street has been rocked this week by fears that the war in Ukraine, rising inflation, the Cowid-19 lockdown in China and trivial measures by the Federal Reserve could lead to a global economic downturn.
Fed Chair Jerome Powell on Thursday reiterated his expectation that the central bank would raise interest rates by half a percentage point in each of its next two policy meetings, promising that “we are ready to do more” if the data goes wrong.
The Fed is valuing a 73% chance of a 75 basis point increase in June.
The S&P 500 index on Thursday came within significant distance of confirming a bear market after hitting its all-time high on January 3. Technology-heavy Nasdaq already has a bear market, down 25.3% from a record close in November last year.
“I think the S&P 500 is a signal to buy near the bear area,” said Sylvia Jablonski, CEO of Defiance ETFs. “We haven’t seen the level of deep buying historically, but I suspect it’s going to change in the near term.”
At 10:12 am ET, the Dow Jones Industrial Average was up 376.41 points, or 1.19%, at 32,106.71, the S&P 500 was up 73.53 points, or 1.87%, at 4,003.61, and the Composite was up 32,38,39 points. %, At 11,704.44.
This week’s losses put the benchmark S&P 500 and Nasdaq on course for their sixth weekly loss, while the blue-chip Dow was looking at its seventh consecutive weekly fall.
Twitter Inc. was among the biggest losers on Friday after a $ 44-billion deal to buy Tesla chief Elon Musk’s micro-blogging platform was “temporarily suspended”, down 10% even though he said he was committed to the acquisition.
Tesla Inc. jumped 4.6%.
Robinhood Markets Inc.
Occidental Petroleum rose 6.3% after Warren Buffett’s Berkshire Hathaway announced it would buy more shares of the oil company this week.
Progress issues outperformed the NYSE by a 5.50-to-1 ratio and the Nasdaq by a 4.70-to-1 ratio.
The S&P Index recorded 1 new 52-week high and 30 new lows, while Nasdaq recorded 3 new highs and 264 new lows.