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Wall Street closed sharply higher on Friday to end a volatile trading week, as Treasury yields eased from their recent highs and economic data helped investors look past the growing chances of the Fed continuing with its steep rate hike policy till the end of this year. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1.2% or 387.40 points to finish at 33,390.97 points.
The S&P 500 climbed 1.6% or 64.29 points to end at 4,045.64 points. Tech and consumer discretionary stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) each gained 2.2%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 2% or 226.02 points to close at 11,689.01 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.62% to 18.49. Advancers outnumbered decliners on the NYSE by a 4.54-to-1 ratio. On Nasdaq, a 2.36-to-1 ratio favored advancing issues. A total of 10.83 billion shares were traded on Friday, lower than the last 20-session average of 11.10 billion.
Markets Hold on To Gains Despite Worries
U.S. stocks ended sharply higher on Friday, with the S&P 500 snapping a three-week losing streak and the Dow closing more than 1% up for two straight sessions, as investors weighed if the Fed will continue to increase its interest rates at an aggressive pace in its bid to bring down inflation.
Wall Street has also been digesting a lot of comments from Fed officials. Investors’ confidence got a boost on Friday after Atlanta Fed President Raphael Bostic said that he feels the Fed could still hike interest rates by a smaller 25 basis points in its next meeting although many are still in favor of a 50-basis point increase.
However, in his remarks to the Mid-Size Bank Coalition of America, Fed Governor Christopher J. Waller adopted a more confrontational tone, highlighting the potential of a higher terminal rate if inflation numbers don't decline.
Markets pulled back in February after a solid start to the year as robust job additions hinted at a resilient economy despite hotter-than-expected inflation numbers. This made market participants reassess expectations of how long will the Fed continue with itsinterest rate hikes to bring down inflation to its target level.
Tech stocks were the big gainers on Friday as the 10-year Treasury yield fell below the 4% mark. Investors have been watching 4% as the key level as that could result in another down move for stocks. A breakout in the 10-year Treasury yield might have an impact on the economy because it is a benchmark rate that influences mortgages and auto loans.
Image: Bigstock
Stock Market News for Mar 6, 2023
Wall Street closed sharply higher on Friday to end a volatile trading week, as Treasury yields eased from their recent highs and economic data helped investors look past the growing chances of the Fed continuing with its steep rate hike policy till the end of this year. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1.2% or 387.40 points to finish at 33,390.97 points.
The S&P 500 climbed 1.6% or 64.29 points to end at 4,045.64 points. Tech and consumer discretionary stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) each gained 2.2%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 2% or 226.02 points to close at 11,689.01 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.62% to 18.49. Advancers outnumbered decliners on the NYSE by a 4.54-to-1 ratio. On Nasdaq, a 2.36-to-1 ratio favored advancing issues. A total of 10.83 billion shares were traded on Friday, lower than the last 20-session average of 11.10 billion.
Markets Hold on To Gains Despite Worries
U.S. stocks ended sharply higher on Friday, with the S&P 500 snapping a three-week losing streak and the Dow closing more than 1% up for two straight sessions, as investors weighed if the Fed will continue to increase its interest rates at an aggressive pace in its bid to bring down inflation.
Wall Street has also been digesting a lot of comments from Fed officials. Investors’ confidence got a boost on Friday after Atlanta Fed President Raphael Bostic said that he feels the Fed could still hike interest rates by a smaller 25 basis points in its next meeting although many are still in favor of a 50-basis point increase.
However, in his remarks to the Mid-Size Bank Coalition of America, Fed Governor Christopher J. Waller adopted a more confrontational tone, highlighting the potential of a higher terminal rate if inflation numbers don't decline.
Markets pulled back in February after a solid start to the year as robust job additions hinted at a resilient economy despite hotter-than-expected inflation numbers. This made market participants reassess expectations of how long will the Fed continue with itsinterest rate hikes to bring down inflation to its target level.
Tech stocks were the big gainers on Friday as the 10-year Treasury yield fell below the 4% mark. Investors have been watching 4% as the key level as that could result in another down move for stocks. A breakout in the 10-year Treasury yield might have an impact on the economy because it is a benchmark rate that influences mortgages and auto loans.
Shares of Apple, Inc. (AAPL - Free Report) gained 3.5%, while Meta Platforms, Inc. (META - Free Report) jumped 6.1%. Also, shares of Netflix, Inc. (NFLX - Free Report) rose 1.1%. Netflix has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Friday saw a volatile trading session. Stocks managed to hold on to the gains despite economic data showing steady demand for services.
Economic Data
The Institute for Supply Management said its services index advanced to 55.1% in February, indicating a resilient U.S. economy.
Weekly Roundup
All three indexes closed higher for the week. The S&P 500 closed 1.9% higher. The Nasdaq gained 2.6% for the week, while the Dow finished 1.7% higher.