Technology companies led a broad rally for stocks on Friday as Wall Street notched its best week in 18 months. The gain broke a seven-week losing streak for the market, the longest such stretch since 2001.
The S&P 500 rose 2.5 per cent and finished 6.6 per cent higher for the week, its best weekly gain since November 2020. The Dow Jones Industrial Average rose 1.8 per cent and the tech-heavy Nasdaq gained 3.3 per cent. It sets up the Australian sharemarket to rise sharply on Monday, with futures pointing to a gain of 83 points, or 1.2 per cent, at the open.
Wall Street broke its seven-week losing streak, its longest since 2001.Credit:AP
The strong finish for the week came as investors received potentially encouraging news about inflation. The Commerce Department said that inflation rose 6.3 per cent in April from a year earlier, the first slowdown since November 2020 and a sign that high prices may finally be moderating, at least for now.
The report was released as Wall Street looks for any signal that inflation could be easing, while trying to figure out just how low stocks might sink.
“At this point that’s all the market needs,” said Ross Mayfield, investment strategy analyst at Baird. “It’s definitely one of the signs you would want to see.”
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The S&P 500 ended 100.40 points higher at 4,158.24. The Nasdaq rose 390.48 points to 12,131.13. It was the third straight gain for both indexes. The Dow rose 575.77 points to 33,212.96, its sixth-straight gain.
Smaller company stocks also gained ground. The Russell 2000 rose 49.66 points, or 2.7 per cent, to 1,887.90.
The broader market has been in a slump for nearly two months as concerns about inflation and rising interest rates pile up. Investors were spooked last week by disappointing reports from key retailers, including Walmart and Target, which stoked fears about rising inflation hitting profit margins and crimping consumer spending.
