Nasdaq adds 1.9%, S&P 500 closes nearly 1% higher and notches best week since June

The S&P 500 closed its best week since June as a report on Thursday showing slowing inflation raised hopes that the Federal Reserve would soon ease its tightening campaign.

The broader market index added 0.9%, to close at 3,992.93. This took its gain for the week to 5.9%, its best week since the one that ended on June 24 of this year. The Nasdaq Composite added about 1.9% to end at 11,323.33 as investors bought tech stocks on hopes that interest rates would ease. The Dow Jones Industrial Average gained 0.1%, closing at 33,747.86.

On Friday, tech stocks rocked a drop in cryptocurrencies. Virtual currencies fell sharply this week and came under pressure again on Friday after FTX filed for bankruptcy protection, and CEO Sam Bankman-Fried resigned. Both bitcoin and ether declined.

Still, tech stocks and related crypto stocks rebounded after opening lower on Friday. The S&P 500 tech sector jumped 10% through Friday, its best weekly performance since April 2020. Amazon rose more than 4% on Friday, while Google-parent Alphabet rose 2.6%.

The Dow Jones jumped more than 1,200 points on Thursday following a lower than expected increase consumer prices for the month of October, giving investors hope for a slowdown in inflation. The S&P rose 5.5% and the Nasdaq Composite jumped about 7.4%. It was the best day since 2020 for all three indices.

Treasury yields plunged on Thursday due to a weaker-than-expected inflation rate. The bond market was closed on Friday to observe Veterans Day.

“From an equity market perspective, as long as the threat of much higher rates is gone, this should remove a major headwind,” Barclays head of European equity strategy Emmanuel Cau wrote in a Friday note. .

All indices posted a winning week. The Dow Jones rose 4.1% on a weekly basis, while the Nasdaq Composite rose 8.1%. The week marked the resumption of a comeback rally for the bear market, which began in mid-October.

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