US stocks rise after a tough trading week

US stocks rose on Friday after a grueling week of losses across the major indexes.

Traders welcomed the delay from a tough sell-off in the spring that left no corner of the market unscathed. This week brought several shocks to the market. data showed Inflation is still hotDisappointed investors. Cryptocurrencies fell after that The so-called stablecoin unexpectedly crashed. On Thursday, the S&P 500 index dealt with bear market territory, 20% lower than its recent high, and the Dow Jones Industrial Average is on track to post weekly losses for the seventh consecutive week, the longest losing streak in more than 20 years.

The Nasdaq Composite has jumped about 3% in recent trading, while the S&P 500 is up 1.8% and the Dow Jones Industrial Average is up 270 points, or 0.9%. All three indices are down from the highs seen earlier in the session.

Follow the moves up Thursday’s walk late That helped the Nasdaq Composite Index gain. Risk sentiment has been trading in international stock markets overnight. By Friday morning in the US, investors were collecting stocks of shabby tech companies before the opening bell.

However, traders and investors were unwilling to get to the bottom.

“Is this week going to be this year’s low? I doubt that,” said Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management. “I wouldn’t be surprised if we felt a deeper kind of growth sometime this summer.”

Investors are currently facing issues not seen in decades as inflation continues to hover near a four-decade high. Many traders believe a recession is increasingly likely as the Federal Reserve tries to control price pressures. Many institutional and individual investors alike are beginning to dismiss the idea that the Fed can engineer The so-called soft landingInflation falls but unemployment remains low and the economy continues to grow.

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Although Mr. Slimmon said he believed there was more short-term pain in store, he remained optimistic in the longer term, and said he believed the market would rebound by the end of the year, citing some somewhat upbeat earnings reports. More than three-quarters of S&P 500 companies reported a positive surprise in first-quarter earnings per share, in line with previous quarters, according to FactSet.

“I spend a lot of time talking to companies and listening to company conference conferences, and what I can tell you is that I don’t collectively hear about the corporate weakness that I see in the stock market,” Mr. Slimmon said.

On Thursday, Federal Reserve Chairman Jerome Powell acknowledged that controlling inflation could create short term blow to the economy“The process of bringing inflation down to 2% would also involve some pain,” he said on a Marketplace radio show.

He reiterated his view that additional increases of half a percentage point would likely be appropriate in future meetings, but said the central bank might consider larger increases if economic data warranted such steps.

This week’s inflation report offered little solace to investors, especially after data showed that price pressures were fairly broad-based. Even as gasoline prices fell, so did the prices of groceries, as well as dining out, air travel and other services, alarming investors who had hoped inflation had peaked.

The last time inflation was this high, the Federal Reserve raised interest rates so much that it put the US into a recession. Will we see a repeat of that day? Dion Rabouin of the Wall Street Journal explains why the Fed’s next steps are important. Photo: Kevin Deitch/Getty Images

This has forced many to sell riskier investments and pile them into assets that are seen as safer. Growth and technology stocks, which tend to be hurt by rising interest rates, in particular, are off. But risk aversion sentiment has spread elsewhere, Leading to a sharp drop in cryptocurrenciesvery.

“This week has been a pivotal point in the markets. The mood has changed from assessing whether we can live in an economy at higher rates to [investors] He asked, “Are we on the verge of a recession?” said Florian Ilbo, Head of Macro at Lombard Odier Investment Managers.

But on Friday, technology stocks were among those that led the recovery.

nvidia

added 9.3%,

PayPal

Advance 5.4% and

Netflix

4.5% profit.

Twitter

TWTR -9.94%

Shares fell 8.5 percent after that

Tesla

chief executive officer

Elon Musk

He tweeted that his deal to buy the social media company and take it private was “temporarily on hold.” Details about the size of the fake accounts on the social media platform. Mr. Musk later tweeted that he was committed to the acquisition, helping Twitter Trim pre-market losses of more than 20%. Tesla shares recently rose 7%.

Robinhood

It surged 24% after Sam Bankman-Fried, founder of crypto exchange FTX . revealed bought 7.6% stake in brokerage.

Duolingo

It jumped 39% after the language-learning platform reported a sharp jump in revenue and monthly active users.

Bitcoin rose to around $30,419 on Friday, from the 5pm ET level of $28,572.24 on Thursday. Elsewhere in the crypto markets, however, the beleaguered stablecoin TerraUSD continued to slide, trading at 11 cents. TerraUSD broke its usual peg to $1 last weekend Token sale wave. Sister token Luna has also fallen sharply this week, trading at half a penny, down from over $60 on Monday.

In the bond market, the yield on the US 10-year Treasury rose to 2.928% from 2.815% on Thursday, reversing the four-day yield decline that came as investors once again piled into bonds. Yields rise when bond prices fall.

Overseas stock markets were also trading higher on Friday. In Europe, the Stoxx Europe 600 Index across the continent is up 1.6%. In Asia, Hong Kong’s Hang Seng rose 2.7%, while Japan’s Nikkei 225 climbed 2.6%. The Shanghai Composite Index is up 1%.

Traders worked on the floor of the New York Stock Exchange on Thursday.


picture:

John Minchillo/The Associated Press

—Caitlin Ostrov contributed to this article.

Write to Caitlin McCabe at [email protected] and Corrie Driebusch at [email protected]

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