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Dow up, but stocks on track for 6th consecutive week of losses

Wall Street found some relief on Friday as major stock indices rebounded after a week of brutal selling – but markets still ended lower for the sixth week in a row.

Shaken by a surprisingly high monthly inflation rate and a cataclysmic cryptocurrency selloff this week, investors are growing increasingly worried about whether Federal Reserve Chairman Jay Powell will be able to stage a landing. smooth for the US economy with a series of rate hikes in the coming months. .

The Dow Jones Industrial Average rose 466.36 points, or 1.47%, to 32,196.66 on Friday and the Nasdaq rose 3.8%. Both indices ended with weekly losses.

The S&P 500 rose 2.4%. The benchmark index recorded its sixth straight week of losses, something that hadn’t happened since 2011.

Technology stocks led the gains. Apple rose 3.2% and Microsoft 2.3%.

The sector was the source of much of the broader market volatility throughout the week and fell overall as higher interest rates tend to weigh more heavily on stocks. more expensive.

Markets continue to be weighed down by record levels of inflation as well as the ongoing Russian war in Ukraine.
Reuters

Retailers and communications companies also made solid gains. Amazon jumped 5.7% and parent company Google rose 2.8%.

Jordan Waldrep, chief information officer of Dallas-based TrueMark Investments, told The Post that the market’s slide was the result of a confluence of factors that together make up a perfect storm – inflation, the Russia’s invasion of Ukraine, supply chain disruptions and the ongoing COVID-19 pandemic.

“Put it all together and you’re vulnerable to a correction,” Waldrep told the Post.

“Vulnerable enough to turn the ship around and start a sale.”

Asked if there was any light at the end of the tunnel for investors, Waldrep said that while bullish for the long term, Wall Street could expect to see more turbulence in a near future.

“I don’t know if we are experiencing an orderly correction or the start of something bigger,” he said.

“To date, the selling has been fairly orderly, but we have yet to see a true trading day with heightened volatility and massive volumes that often mark the end of these corrections.”

Waldrep said the Federal Reserve’s hike in interest rates “caused the market to pull some of the air out of the balloon.”

“As painful as it has been for investors, I think it’s been a healthy sell-off so far,” he said. “I would like to see the market find a footing and start to rebuild from these levels.”

Mark Andraos, associate portfolio manager at Regency Wealth Management, told the Post that the selloff was the stock market’s result “in significant uncertainty about whether the Fed can stage a soft landing and not tip the economy in the recession”.

“The silver lining is that corporate earnings have been strong and stock market valuations are more attractive than they were pre-pandemic, creating selective opportunities to add to high-quality companies that have sold off,” he said. he declared.