Wall Street extends winning streak to 4th week - Albuquerque Journal

Wall Street extends winning streak to 4th week

Wall Street capped a choppy week of trading with a broad stock market rally Friday, as the S&P 500 notched its fourth consecutive weekly gain.

The benchmark index closed 1.7% higher, for a 3.3% weekly gain. The S&P 500 hadn’t posted such a good stretch since November.

The Dow Jones Industrial Average rose 1.3%, while the Nasdaq and Russell 2000 index of smaller companies both closed 2.1% higher. Each index also posted a solid weekly gain.

Technology stocks drove much the rally. Crude oil prices fell and bond yields were mixed.

Trading was choppy much of the week, but major indexes got a big bump on Wednesday after a report showed that inflation cooled more than expected last month. Another report on Thursday showed inflation at the wholesale level also slowed more than expected.

The cooler-than-expected inflation readings have bolstered hopes among investors that inflation may be close to a peak and that the Federal Reserve could less aggressively hike interest rates, its main tool for fighting inflation.

“The data that we’ve gotten this week has all been consistent with the idea that we’re in the midst of peak inflation rates on a month-to-month basis,” said Scott Ladner, chief investment officer at Horizon Investments. “And that’s something that we’ve been waiting to see for months now. And it looks like, if that’s the case, then we’ve probably also seen peak Fed hawkishness.”

The S&P 500 rose 72.88 points to 4,280.15, while the Dow gained 424.38 points to 33,761.05. The Nasdaq added 267.27 points to 13,047.19.

Small-company stocks also made strong gains in a sign that investors are confident about the economy. The Russell 2000 rose 41.36 points to 2,016.62.

Around 95% of the stocks in the S&P 500 rose, with technology companies driving much of the rally. Chipmaker Nvidia rose 4.3%.

The central bank has been raising interest rates in the hopes of slowing the economy and cooling the hottest inflation in four decades, but investors are worried that it could hit the brakes too aggressively and steer the economy into a recession.

On Friday, a survey by the University of Michigan showed that consumer sentiment is stronger than economists expected. Still, inflation remains painfully high. That means the Fed is likely to remain on course with its rate hikes until it is certain that prices have peaked and are easing.

The Fed’s last two increases were by 0.75 percentage points. Traders now see about a 60% chance that the central bank will raise overnight interest rates by half a percentage point at its next meeting.

“The market’s strength is based on the assumption that inflation peaked and the Fed can relax, but that may be a bit too complacent,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

The yield on the 10-year Treasury fell to 2.84% from 2.88% late Thursday. It remains below the two-year yield. That’s an unusual inversion of the expectation that borrowing money for a longer period should cost more than a shorter period. When investors demand a higher return for a short term like the 2-year than a longer one like 10 years, it’s viewed by some investors as a reliable signal of a pending recession. The economy has already contracted for two consecutive quarters.

Next week the Commerce Department releases its retail sales report for July and retail giant Walmart reports its latest financial results.

Investors can also assess the health of the housing market when they get a report on home sales for July and the latest earnings from Home Depot.

Home » Business » Most Recent Biz News » Wall Street extends winning streak to 4th week


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

taboola desktop

1
Arrest made in death of Calvary Church security guard
ABQnews Seeker
Security officer Daniel Bourne told his ... Security officer Daniel Bourne told his supervisor Friday night that there was a suspicious truck in the parking lot of Calvary Church, sending a ...
2
It 'gave me a purpose'
ABQnews Seeker
Program for disadvantaged young people offers ... Program for disadvantaged young people offers new path as emergency medical technicians
3
Keller goes to bat for safe outdoor spaces again
ABQnews Seeker
Mayor has vetoed council vote to ... Mayor has vetoed council vote to reallocate funding
4
'Epicenter of fun': Nob Hill motel reborn as boutique ...
ABQnews Seeker
Owner works with almost 50 artists, ... Owner works with almost 50 artists, most of them women or people of color
5
LFC: Yazzie-Martinez lawsuit response lagging
ABQnews Seeker
Districts have not taken advantage of ... Districts have not taken advantage of program money for 'at risk' students
6
BCSO IDs man fatally shot by deputies in SW ...
ABQnews Seeker
45-year-old killed after pusuit; no additional ... 45-year-old killed after pusuit; no additional details released
7
Ex-ROTC instructor suspected in second rape
ABQnews Seeker
Investigators believe Ira Harris is the ... Investigators believe Ira Harris is the father of a teen's baby
8
Electric demand to outpace capacity for New Mexico utilities
ABQnews Seeker
Blackouts feared for 2023, 2024 seasons Blackouts feared for 2023, 2024 seasons
9
Jury convicts ABQ man in 2019 shooting death
ABQnews Seeker
Defense attorneys told jurors the death ... Defense attorneys told jurors the death was a 'tragic accident'
10
US awards $73M contract for Navajo-Gallup water project
ABQnews Seeker
Arizona company will build two pumping ... Arizona company will build two pumping plants