Stocks rose on Friday as Wall Street ended a turbulent week on a high note despite some disappointing earnings reports.
The Dow Jones Industrial Average rose 748.97 points, or 2.47%, to 31,082.56. The S&P 500 rose 2.37% to 3,752.75. The Nasdaq Composite rose 2.31 percent to 10,859.72.
Friday’s move extended the market’s gains this week. The S&P 500 and Dow rose 4.7% and 4.9%, respectively, while the Nasdaq gained 5.2%. It was the best week for all three major averages since June.
The gains came despite 10-year U.S. Treasury yields surging to their highest levels since 2008 and mixed corporate earnings reports.
“I think the market was technically a little oversold over the weekend. As we’ve seen many times in the past, when things get negative enough, it becomes a contrarian indicator of some sort of rebound,” Randy Schwab said. Frederick, Managing Director, Trading and Derivatives, Center for Financial Research.
“But like every rally we’ve had, it didn’t last very well. … Today’s rally doesn’t necessarily mean it’ll last into next week. If it does, I doubt it It won’t be more than a day or two,” Frederick added.
Bank stocks were the bright spot on Friday, with Goldman Sachs up 4.6% and JPMorgan Chase up 5.3%.
Earnings reports Market gains are limited. Dow components American Express and Verizon fell about 1.6% and 4.5%, respectively, after their quarterly reports. In the tech sector, social media company Snap fell 28% after reporting quarterly revenue of $1.13 billion, missing estimates.
The Wall Street Journal reported that some Fed officials were concerned that sharp interest rate hikes would lead to excessive tightening, and U.S. Treasury yields fell from highs early on Friday. The report also appeared to boost stocks.
Aggressive central bank rate hikes have been a major factor in the stock market’s plunge into a bear market this year, as traders continue to raise expectations for where the Fed will stop.
“We really need a pause from the Fed. Instead of outright denying future rate hikes, they’ll just say every meeting is real-time and if the data is in line with our expectations, then after 1H23 we don’t It won’t have to do more,” said Barry Bannister, chief equity strategist at Stifel, on CNBC’s “Squawk on the Street.”