Stocks rebound, taking a break from the selloff, but markets are down for the sixth week in a row
Markets surged on Friday, paring some of the heavy losses of recent days as investors helped the benchmark S&P 500 index stay out of bear market territory, although stocks are still on track for their sixth straight week of losses amid this year’s sharp selloff.
Stocks largely rebounded, paring some of the heavy losses earlier in the week: The Dow Jones Industrial Average rose 1.4%, more than 400 points, while the S&P 500 jumped 2.5% and the Nasdaq Composite, very technological, by 3.9%.
Consumer, technology and energy stocks led the broad market rally on Friday, with all 11 S&P 500 sectors advancing despite the index hitting a new 2022 low a day earlier.
Excluding the “epic rally on the last trading day of the week, the S&P 500 and Nasdaq will experience their sixth straight week of losses today,” one of the longest weekly losing streaks since at least 2001. according to data from Bespoke Investment Grouper.
Despite the rebound, the Dow Jones, S&P 500 and Nasdaq all fell 2% or more this week on strong sell-offs in recent sessions as investors largely continued to offload stocks amid heightened uncertainty. on the stairs.
Beaten tech stocks, which have driven the market down this year, surged on Friday: Meta, parent of Facebook, Netflix, Amazon and Alphabet, parent of Google, all rose around 4% or more.
Shares of electric vehicle maker Tesla jumped more than 7%, while two heavily shorted meme stocks, GameStop and AMC Entertainment, jumped 12% and 7%, respectively.
Shares of popular stock trading app Robinhood, which has struggled amid depressed user growth on the platform, jumped more than 20% on Friday. The surge followed news that billionaire Sam Bankman-Fried, founder and CEO of cryptocurrency exchange FTX, disclosed a 7.6% stake in the company.
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Shares of social media company Twitter fell more than 8% after billionaire Tesla Elon Musk, who hammered a $44 billion takeover last month, said he would put the deal down. “temporarily pending”. Musk raised concerns about the number of fake accounts and spam on Twitter, saying he was waiting for more details from the company.
Markets have been under relentless pressure on growing worries about an economic slowdown as the Federal Reserve scrambles to raise interest rates and tackle soaring inflation. The S&P 500 has fallen 16% so far this year, putting the benchmark on the edge of bearish territory (20% below record highs). The Dow is down nearly 12% in 2022, while the Nasdaq is down 29%, well into bearish territory.
S&P 500 hits new 2022 low as ‘staggering’ market losses continue (Forbes)
Elon Musk Says Twitter Deal Is “Pending” (Forbes)
Meme Stocks Rise Despite Market Selloff: GameStop Trading Halted, AMC Jumps (Forbes)
Wall Street believes these stocks, including McDonald’s, Dollar General and Visa, can withstand market volatility (Forbes)