Wall Street stocks recovered from a sluggish start and finished widely higher on Friday, though the gain was insufficient to reverse the week’s losses.
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The S&P 500 increased 1.1% after falling 0.9% in the first half. The rise ended the benchmark index’s four-day losing streak, but it still produced its fourth losing week in the previous five.
The Dow Jones jumped 1%, while the Nasdaq gained 0.9% after a sell-off in technology sectors calmed.
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The bumpiest trade came only a day after the S&P 500 finished its worst quarter since the pandemic began in early 2020. Its performance in the first six months of 2022 was the lowest since the same period in 1970.
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The S&P 500 has been in a bear market since last month, meaning an extended decline of 20% or more from its most recent peak. It’s now down 20.2% from the peak it set at the beginning of this year.
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Bond yields fell significantly. The yield on the 10-year Treasury, which helps set mortgage rates, fell to 2.89% from 2.97% Thursday. The yield on the 2-year Treasury slipped to 2.83% from 2.92%.
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The market’s deep slump this year reflects investors’ anxiety over surging inflation and the possibility that higher interest rates could bring on a recession.
The S&P 500 rose 39.95 to 3,825.33. Roughly 85% of the stocks in the index finished higher.
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The Dow gained 321.83 points to 31,097.26, while the Nasdaq rose 99.11 points to 11,127.85. The Russell 2000 index of smaller companies rose 19.77 points, or 1.2%, to 1,727.76.
The market’s latest gyrations precede a long holiday weekend. Financial markets in the U.S. will be closed on Monday for Independence Day.
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Wall Street remains concerned about the risk of a recession as economic growth slows and the Federal Reserve aggressively hikes interest rates. The Fed is raising rates to purposefully slow economic growth to help cool inflation, but could potentially go too far and bring on a recession.
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Kohl’s dove 19.6% after the department store’s potential sales fell apart amid the shaky retail environment as consumers lose confidence and cut spending. Kohl’s had entered exclusive talks with Franchise Group, the owner of Vitamin Shop and other retail outlets, for a deal that was potentially worth about $8 billion.
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Other retailers, restaurant chains and companies that rely on direct consumer spending helped lead the market rally. Amazon rose 3.2%, Home Depot gained 1.8% and Starbucks rose 3.8%.
Banks and health care stocks also notched gains. Wells Fargo rose 1.9% and Johnson & Johnson closed 1.1% higher.
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Technology stocks largely bounced back from their broad morning slump, though many still closed lower. Chipmaker Micron slid 3% after giving investors a disappointing profit forecast amid concerns about falling demand. That weighed heavily on other chipmakers. Nvidia fell 4.2% and Qualcomm lost 3.3%.