Stocks rose on Thursday as investors headed into the final trading days of 2022.
The Dow Jones industrial average rose 352 points, or 1.1%. The S&P 500 rose 1.8% and the Nasdaq Composite rose 2.5%.
The Dow and S&P each rose 0.1% for the week, while the Nasdaq fell 0.3%.
Louis Navellier, founder and chief investment officer of growth investment firm Navellier & Associates, called it “a shortened one-day version of the Santa Rally.”
“We’re overdue for a rebound, and a lot of the recent weakness can be explained by further tax loss selling once the Santa rally doesn’t materialize,” he said. “We’ll have more volatility in the New Year with plenty of uncertainty about whether a soft landing is possible, or how much the Fed won’t decide if we’re heading into a deep recession.”
Apple shares rebounded more than 3% after four straight days of losses.
Markets rose early Thursday after the Labor Department Unemployment claims are reported to have increased Since last week, amid efforts by the Federal Reserve to cool the economy and especially the labor market.
First-time filers for unemployment benefits totaled 225,000 in the week ending Dec. 24, according to the report. That was an increase of 9,000 from the previous week and slightly higher than the Dow Jones estimate of 223,000.
Market action follows a Wide sale During Wednesday’s regular session, recession fears weighed on investor sentiment over a lost month and year. The Dow lost 365.85 points, or 1.1%. The S&P 500 fell 1.2%, while the Nasdaq Composite fell 1.35%.
The major averages are headed for the worst year since 2008. The Dow lost 8.8%, while the S&P 500 fell 19.7%. Meanwhile, the Nasdaq fell 33.6% to underperform in the third as investors dumped growth stocks.
“Investors expect an economic slowdown in early 2023, evidenced by three quarters of S&P 500 earnings declines and a continued defensive sector tilt,” said Sam Stovall, chief investment strategist at CFRA Research. “The severity of the recession remains in question. We expect it to be mild.”