S&P 500 rises but heads for third-straight down week

S&P 500 rises but heads for third-straight down week

Stocks rose on Friday as traders tried to recover some of the ground lost in the previous session.

The Dow Jones Industrial Average was last higher by 167 points, or 0.5%. The S&P 500 rose 0.5%, while the and Nasdaq Composite added 0.2%.

The major indexes oscillated earlier in the session after the core personal consumption expenditures price index, the Federal Reserve’s preferred gauge of inflation, came in slightly hotter than economists expected on a year-over-year basis, indicating that inflation is sticking despite the Fed’s efforts to fight it.

“Today, investors have to contend with a weaker-than-expected reading for durable orders that was offset by a softer-than-expected reading for the November PCE,” said Sam Stovall, chief investment strategist at CFRA Research.

“A pre-holiday trading day could be more volatile than normal, due to the light trading volume, which should carry over into the holiday-shortened week between Christmas and New Year’s,” he added.

Friday’s moves followed another down session for markets as December’s sell-off resumed and hopes for a Santa Claus rally faded. The Dow on Thursday tumbled 348.99 points, or 1.05%, but finished well off its 803-point low. The S&P 500 and Nasdaq Composite dove 1.45% and 2.18%, respectively.

The S&P 500 is now down about 0.6% for the week, on pace for its third-straight weekly decline. The Nasdaq Composite, meanwhile has lost more than 2% this week. The Dow has been the outperformer this week, currently on track for a slight gain.

Recession fears have resurged recently dashing some investors’ hope for a year-end rally and leading to big losses in December. Investors worry that overtightening from central banks worldwide could force the economy into a downturn.

For December, the S&P 500 has lost about 6%, while the Dow and Nasdaq have lost more than 4% and 8%, respectively. Those would be the biggest monthly declines for the major averages since September. Stocks are also on pace for their worst annual performance since 2008.

Leave a Comment

Your email address will not be published.