Friday’s stock prices rose as traders digested new batches of bank earnings and strong economic data. This alleviated concerns that the Fed could rise 100 basis points to curb inflation.
Dow Jones Industrial Average I popped 619 points, or 2.02%. The S & P 500 rose 1.75% and the Nasdaq Composite rose 1.53%, but stocks were on track for weekly losses.
“The market is a little more confident that the Fed will probably not offer a full-point rate hike at the end of the month, and we are approaching to see the Fed’s tightening peak priced in the market.” Told. Edward Moya, senior analyst at OANDA, said. It is “giving some relief to investors to shrink into stocks.”
The new round of banks Wells Fargo When Citigroup It provided further insight into the state of the economy.Wells Fargo Quarterly profit fell 48% and surged 6.4%, despite banks securing funds for bad debts... Citigroup 11.2% surge Because it exceeded the estimate and benefited from the rising rate environment..
The day before, investors scrutinized nasty reports from JPMorgan Chase and Morgan Stanley, launching profits for major banks, and the possibility of a significant rate hike by the Federal Reserve and the impending recession. Considered the concerns of.
It seemed to ease concerns that the FRB would rise 100 basis points at future policy meetings, coupled with strong preliminary consumer sentiment data and June retail sales.Also, consumers Strengthen retail spending, even if inflation hits record highs..
According to Cathy Bossjanchitch of Oxford Economics, this number is a sign of equity relief, but it continues to rise by 75 basis points in July.
“The market seems to welcome the news. Trade capital management, numbers are not adjusted for inflation,” said Mike Levengart, managing director of investment strategy at E-Trade at Morgan Stanley. Please note.
Friday’s results motivated a broader rally across the S & P 500, with all major sectors rising that day. Boosted by the surge in bank stocks, treasury surged by more than 3%. Healthcare recovered 2.4% as UnitedHealth recovered 5.8% against the backdrop of strong performance.
Tattered tech stocks also surged on Friday. Metaplatform, Salesforce and Amazon increased by more than 3% and Netflix increased by 6.6%. Goldman Sachs, UnitedHealth and JPMorgan Chase led the Dow’s recovery, rising about 5% each.
The Dow fell 0.3% this week, while the S & P and Nasdaq fell 1.1% and 1.7%, respectively.
In corporate news, Pinterest Shares surged 15.6% following a Wall Street Journal report that activist investor Elliott Management has acquired more than 9% of the shares of social media companies.