The Nasdaq adds 1.9%, the S&P 500 closes about 1% higher and had its best week since June.
The S&P 500 ended its best week since June as a report on slowing inflation on Thursday boosted hopes that the Federal Reserve will soon slow its tightening campaign.
The broader market index added 0.9%, bringing the week’s gain to 5.9%, its best week since June 24 this year. The Nasdaq Composite added 1.9% as investors bought tech stocks on hopes of lower interest rates. The Dow Jones Industrial Average rose 0.1%.
On Friday, tech stocks shook off a decline in cryptocurrencies that came under pressure on Friday after FTX. announced that he will file for bankruptcy, and CEO Sam Bankman-Fried resigned. Bitcoin fell by 5% and ether by more than 3%.
However, tech stocks and related crypto stocks rallied after Friday’s open. The S&P 500 technology sector rose 10% through Friday, or its best weekly performance since April 2020. Amazon shares rose more than 4% on Friday, while Google parent Alphabet was up about 3%.
The Dow jumped more than 1,200 points on Thursday less than expected growth Consumer prices in October give investors hope that inflation has cooled. The S&P was up 5.5%, and the Nasdaq Composite was up about 7.4%. It was the best day since 2020 for the three.
Treasury yields fell on Thursday due to weaker-than-expected inflation. The 10-year Treasury yield was at 3.82% after ending last week at 4.16%.
“From an equity market perspective, this should remove a major headwind until the threat of much higher rates fades,” Barclays Emmanuel Cau wrote in a note on Friday.
All indices posted a winning week. The Dow is up nearly 4% for the week, while the Nasdaq Composite is up more than 8%. This week is a resurgence of the bear market rally that started in mid-October but has been put on hold in recent weeks. The S&P 500 is now up more than 14% from bear market lows, but is still down 16% for the year.
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