Wall Street breaks 7-week losing streak, longest since 2001
NEW YORK >> Technology companies led a broad rally for stocks Friday as Wall Street notched its best week in 18 months. The gain broke a sevenweek losing streak for the market, the longest such stretch since 2001.
The S&P 500 rose 2.5% and finished 6.6% higher for the week, its best weekly gain since November 2020. The Dow Jones Industrial Average rose 1.8% and the tech-heavy Nasdaq gained 3.3%.
The strong finish for the week came as investors received potentially encouraging news about inflation. The Commerce Department said that inflation rose 6.3% 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.”
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%, 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.
Trading remained choppy throughout the week, though the market mostly pushed higher, as retailers including Macy's and Dollar General released encouraging earnings reports and financial updates.
Retailers were among the biggest gainers Friday as investors continued reviewing the latest round of earnings to get a better sense of just how much pain rising inflation is inflicting on businesses and consumers. Beauty products company Ulta Beauty surged 12.5% for the biggest gain in the S&P 500 after raising its profit forecast for the year. Amazon rose 3.7%.
Disappointing financial updates and earnings weighed on several companies. Clothing retailer American Eagle fell 6.6% after reported weak firstquarter earnings.