Growth stocks led a rebound in major Wall Street indexes on Friday at the end of a week marred by concerns over deteriorating economic growth prospects, while Twitter sank after Elon Musk suspended his deal for social media company.
All 11 major S&P sectors rose in early trading, with technology and consumer discretionary stocks rising 2.7% and 3.3% respectively.
Growth stocks such as Apple Inc, Alphabet Inc, owner of Google, Amazon.com and Nvidia Corp gained between 2.2% and 6.5% after falling for most of the week.
Wall Street has been spinning wildly this week on fears that the war in Ukraine, soaring inflation, COVID-19 lockdowns in China and hawkish policy moves by the Federal Reserve could trigger a global economic slowdown.
Fed Chairman Jerome Powell repeated on Thursday that he expects the central bank to raise interest rates by half a percentage point at each of his next two policy meetings while promising “we are ready to do more” if the data turns the wrong way.
Money markets are pricing in a 73% chance of a 75 basis point Fed hike in June.
On Thursday, the S&P 500 index was on the verge of confirming a bear market after fading from its all-time high reached on January 3. Last year.
“I think the S&P 500 approaching bearish territory is a buy signal,” said Sylvia Jablonski, CEO of Defiance ETFs. “We haven’t seen the level of bearish buying that we have historically, but I suspect that will change in the near term.”
As of 10:12 a.m. ET, the Dow Jones Industrial Average was up 376.41 points, or 1.19%, at 32,106.71, the S&P 500 was up 73.53 points, or 1.87%, at 4,003.61, and the Nasdaq Composite was up 333.48 points, or 2.93. %, at 11,704.44.
This week’s losses put the benchmark S&P 500 and Nasdaq on track for their sixth straight weekly loss, while the blue chip Dow was eyeing its seventh straight weekly decline.
Twitter Inc was among the biggest losers on Friday, dropping 10% after Tesla chief Elon Musk said the $44 billion deal to buy the microblogging platform was “temporarily on hold. even though he said he was committed to the acquisition.
Tesla Inc jumped 4.6%.
Robinhood Markets Inc jumped 21% after Samuel Bankman-Fried, chief executive and founder of cryptocurrency exchange FTX, disclosed a 7.6% stake in the brokerage app company.
Occidental Petroleum climbed 6.3% after Warren Buffett’s Berkshire Hathaway revealed it bought more shares of the oil company this week.
Advancing issues outnumbered declining issues with a 5.50-to-1 ratio on the NYSE and a 4.70-to-1 ratio on the Nasdaq.
The S&P index recorded 1 new 52-week high and 30 new lows, while the Nasdaq recorded 3 new highs and 264 new lows.