Dow gains 150 points and heads for winning week as 2023 comeback rally continues

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, January 26, 2023.

andrew kelly | Reuters

Stocks rose on Friday, and all major averages headed for a winning week fueled by better-than-expected economic growth and a pop from market darling Tesla.

The S&P 500 gained 0.4%, while the Nasdaq Composite gained 0.56%. The Dow Jones Industrial Average last rose 135 points, or 0.4%.

The earnings season continued, with Intel dropping more than 8% following a dismal earnings report that missed top and bottom results. Strong reinforced orientation American Express 9% despite a failure in terms of turnover and results.

All major averages are positive for the week and month. The Dow Jones and the S&P 500 gained 1.7% and 2% respectively this week. The Nasdaq is up 3.2% on the week and is expected to post its best monthly performance since July. The Nasdaq has been gaining for the past four weeks. Tesla rose 3% on Friday, building on a weekly gain of 24% on the back of a beating in profits.

So far this year, markets have bucked the 2022 downtrend. The Dow is up 2.8%, while the S&P has gained 6.1%. The Nasdaq jumped more than 10.6%

“This year’s stock market rally is impressive and should not be ignored,” said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance. said in a Thursday note. “Unfortunately, the Fed is likely to start bashing the market again as early as next week, so be prepared for volatility again this year; we may be in the eye of the hurricane and not yet fully out of it. affair.”

Investors digested more economic data ahead of next week’s Federal Reserve policy meeting. The personal consumption expenditure price index, a favorite Fed measure of inflation, showed prices rose 4.4% from a year ago, the Commerce Department said. This matched the Dow Jones estimate.

These are some of the latest data ahead of the central bank’s next interest rate decision. Investors are currently expecting a 25 basis point hike.

Stocks come out of a positive session. Investors cheered a better-than-expected fourth-quarter gross domestic product report that fueled hopes the U.S. economy could experience a soft landing as the central bank raises rates to tame inflation.


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