U.S. stocks rose after an active trading session on Friday as traders considered Federal Reserve Chairman Jerome Powell’s latest comments on inflation.
The Dow Jones Industrial Average rose 332 points, or 1.07%. The S&P 500 and Nasdaq Composite rose 1.27% and 1.69%, respectively.
Shares Document identification The electronic contracts rose more than 17% in extended trading after the company reported an earnings beat. The company released its third-quarter earnings forecast, which came in above expectations.
The Dow Jones industrial average rose 193 points, or 0.61%, during Thursday’s regular session – ending higher after alternating between gains and losses throughout the day. The S&P 500 rose 0.66%, and the Nasdaq Composite advanced 0.60%.
Those gains put all three major averages on pace to snap three straight weeks of losses. Through Thursday, the Dow was up 1.45%. Meanwhile, the S&P 500 is up 2.09% and the Nasdaq composite is up 1.99%.
Stocks have been volatile lately after the Fed chief reiterated that he is “fiercely committed” to reducing inflation as expectations for a 0.75 percentage point hike this month rose on Wall Street.
“The case for the current bear market is that the Fed will continue to tighten monetary policy, withdrawing liquidity from the market and causing a tailspin for stocks,” said David Donabedian, chief investment officer at CIBC Private Wealth US. “But this week’s market recovery shows continued resilience in the economy thanks to favorable economic reports.”
However, Donabedian added that he doesn’t think stocks have yet bottomed out in a bear market.
“In reality, the journey to the next bull market will take time and will be marked by a series of setbacks and recoveries,” he said.
