The Dow bounced back by nearly 200 points, but is still heading towards a lost week


0

Major U.S. stock averages recovered on Friday, while markets remained well on track during the lost week driven by fears that the Federal Reserve would withdraw its stimulus.

The Dow Jones Industrial Average strengthened by about 180 points or 0.5%. The S&P 500 added 0.7%. The technically heavy Nasdaq Composite traded 1.1%.

Technology stocks were traded on Green Friday, providing market support. The names of big technologies, such as shares of Microsoft and Netflix, have risen. Shares of chips like Nvidia have risen.

Tesla shares were acquired after electric car maker Elona Muska had an artificial intelligence day introduced a new custom chip i plans to build a humanoid robot.

Still, all three major stock indexes are on track to close a week lower. The S&P 500 was down 0.7% in the week, while the Dow was down 1.3% and the Nasdaq Composite was down 0.9%.

Minutes from the July Fed meeting published this week showed that the central bank is willing to start reducing monthly asset purchases this year. Investors sold stocks and commodities this week and bought bonds for fear that the Fed move could worsen the global economy, which is already under stress due to the delta variant.

“As the Fed shrinks, while the delta variant continues to expand, the transition from a liquidity / policy regime to more mid-cycle markets means we could experience stronger progress,” Barclays strategists say in a note. “Market narratives could therefore become more cautious, as concerns about maximum growth rates, Delta variants and policy errors may prove the opposite, at a time when seasonal and technical characteristics are unfavorable.”

This week, WTI crude oil fell about 8% due to fears, taking with it energy supplies. Diamondback Energy and Valero Energy lost more than 1% on Friday and fell double-digit weekly.

Stock selection and investment trends from CNBC Pro:

—Pippa Stevens of CNBC contributed to the reporting.

.


Like it? Share with your friends!

0

What's Your Reaction?

hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win
Stacy

0 Comments

Your email address will not be published. Required fields are marked *