Stocks Rally but End the Week With a Loss

Wall Street ended higher on Friday at the end of a broad rally. An optimistic conclusion to the whip weeks of buying and selling as a sign of a recovering economy struggled with increasing fluctuations in inflation.

All three major US indices built on Thursday’s gains as the S&P 500 posted its largest one-day percentage gain in over a month.

“It’s a day that you can buy anything,” said Chuck Carlson, senior vice president at Wealthspire Advisors in New York.

Still, the indices posted their largest weekly decline since late February.

Big swings this week were sparked by economic data raising concerns that short-term spikes could lead to long-term inflation, despite assurances from the Federal Reserve to the contrary.

Economic data released on Friday showed that retail sales growth stalled and consumer sentiment weakened while prices continued to rise, suggesting that while the demand boom may take a breather, inflation may not.

On a hint that economic activity could return to normal, the Centers for Disease Control and Prevention’s revised guidelines earlier this week stated that fully vaccinated people no longer need to wear masks outdoors and in most places they no longer have to wear masks could wear indoors.

The S&P 500 gained 1.5 percent on Friday, but ended the week 1.4 percent below last week’s closing price. The Nasdaq Composite rose 2.3 percent on Friday.

All 11 major S&P sectors ended the session green with energy, fueled by the recovery in crude oil prices and seeing the largest percentage gain.

Walt Disney Company stocks fell after subscriber additions to their Disney + streaming service fell below expectations.

Airbnb reported a 52 percent increase in bookings, which led to a surge in stocks.

Comments are closed.