Stocks on Wall Street raced higher on Friday to snapping a punishing losing streak that had almost ended its bull market.
Investors’ optimism over the course of the week was boosted by a slew of earnings results and economic data which helped to pull major indexes away from their lows of the year.
For months, investors have been concerned about high inflation and the path of Federal Reserve rate increases. But on Friday those fears were replaced by new data which showed that U.S. households boosted spending for a fourth straight month.
Meanwhile, a closely watched U.S. inflation reading eased in April. The data, alongside some strong earnings, has pushed shares of retailers sharply higher. Dollar Tree, Ulta Beauty, and Ross Stores were among the week’s biggest winners in the S&P 500, gaining at least 20% apiece.
All three major indexes jumped at least 6% this week, which hasn’t happened since November 2020, partly due to the deep selloff which has made valuations more attractive, encouraging some investors to buy the dip.
The S&P 500 was up 5.87%, breaking a seven-week losing streak. The Dow was up 5.06% and the tech-heavy Nasdaq was up 6.70%. Stocks on the Jamaican market continue to flash red. For the week, the market was down 1.04%.
The outlook for the upcoming week is mixed. A few investors are of the view that the sell-off will continue as some companies convey gloomy outlooks, therefore presenting buy opportunities.
Additionally, uncertainty still lingers around the economy as high inflation continues to chip away at Americans’ wallets and raising concerns about a recession, leading to low levels of confidence.