US stocks rebounded on Friday with Wall Street ending its strong weekly performance, rebounding from the recession caused by the Federal Reserve.
The Dow Jones Industrial Average rose 377.19 points, or about 1.19%, to 3,2151.71. The S&P 500 jumped 1.53% to 4,067.36, and the Nasdaq Composite rose 2.11% to 12,112.31.
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All three major averages snapped a three-week losing streak. The Dow is up 2.66% for the week, while the S&P 500 is up 3.65%. The Nasdaq Composite is 4.14% higher.
Stocks have been volatile recently as expectations for a rate hike rose 0.75 percentage point this month on Wall Street, after Federal Reserve Chairman Jerome Powell said once again that he is “strongly committed” to lowering inflation.
“The case for an ongoing bear market is that the Federal Reserve will continue to tighten monetary policy, withdraw liquidity from the market and cause equities to crash,” said David Donabedian, chief investment officer at CIBC Private Wealth US. But the market recovery this week showed that there is continued resilience in the economy backed by favorable economic reports.”
However, Donabedian added that he doesn’t think stocks have reached the bottom of a bear market yet.
“Indeed, the journey to the next bull market will take time, and it will be marked by a series of setbacks and recovery,” he said.
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