Wall Street closes up on revival supported by inflation data, tech stocks
economictimes.indiatimes.comWall Street's major indexes ended higher on Friday as investors flocked back to tech megacaps that had triggered broad sell-offs earlier in the week, and inflation data boosted optimism that the Federal Reserve will soon commence cutting interest rates.
For the S&P 500 and Nasdaq Composite, the advances could not completely recoup the ground lost in the two previous sessions, with both indexes ending the week lower for the second consecutive week.
The Dow Jones Industrial Average ended in positive territory for the week. Its Friday gains were aided by industrial conglomerate 3M, which jumped 23% to its largest daily percentage gain in decades after it raised the lower end of its annual adjusted profit forecast.
Five members of the so-called Magnificent Seven rose on Friday, led by Meta Platforms which climbed 2.7%. The two exceptions were Tesla and Alphabet, whose lackluster earnings had triggered Wednesday's big market sell-off. They both fell 0.2%, with Alphabet dropping to its lowest close since May 2.
With further Magnificent Seven earnings due next week, the immediate outlook for markets may hinge on what type of results these companies deliver.
«What we get next week from Apple, Microsoft, Amazon.com and Meta is really going to set the tone for whether that rotation continues and, directionally, where the market goes,» said Greg Boutle, head of US equity & derivative strategy at BNP Paribas.
The rotation involves moving out of a set of high-momentum stocks, whose valuations now appear inflated, to
