The Dow gets more than 500 points on the best day of 2022 to end a wild week

US stocks rose in the closed Friday to end a roller coaster week, supported by rising technology stocks.

The Dow Jones Industrial Average rose 564.69 points, or 1.7%, to 34,725.47. The blue-chip average had its best day since December 6 after being down by more than 350 points at the lowest level. The S&P 500 added 2.4% to close at 4,431.85 – its best session since June 2020. The Nasdaq Composite rose 3.1% to 13,770.57.

Apple shares rose nearly 7% after an excellent quarterly result, boosting stock averages. The company reported its largest single quarter in terms of revenue ever, even despite supply challenges and the long-term effects of the pandemic.

The big tech names Microsoft, Amazon, Facebook parent Meta and Google parent Alphabet all closed higher Friday after being beaten up earlier in the week, giving support to the indexes.

On the downside, Chevron shares fell about 3% after missing Wall Street earnings expectations. The Dow component Caterpillar fell about 5%, even after peaking profit estimates.

The major indices saw large fluctuations every day this week – including the Dow, which for the first time ever posted a deficit of more than 1,000 points during the day to close higher on Monday. The S&P 500 released an intraday interval of at least 2.25% every day this week, according to Tailor-made investment group.

“The huge intraday movements are a sign of the challenge that the market is now facing, which is that financial conditions will be tightened,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management. “When new information comes in, when markets overreact in one direction or another, this type of volatility and some of these fluctuations are likely to be with us for some time, given the nature of what the market is trying to price.”


High, low, and closure levels for the Dow Jones Industrial Average

Chart: Nate Rattner / CNBC

Source: FactSet. Pr. January 28, 2022

High, low, and closure levels for the Dow

Jones Industrial Average

Chart: Nate Rattner / CNBC

Source: FactSet. Pr. January 28, ’22.

High, low, and closure levels for the Dow Jones Industrial Average

Chart: Nate Rattner / CNBC

Source: FactSet. Pr. January 28, 2022

The Dow ended the week 1.3% higher, and the S&P 500 added 0.8% on the week, breaking a three-week losing streak. The Nasdaq Composite ended slightly changed week to date.

“It’s been a frustrating week for investors. It’s a kind of push-pull or tug-of-war between bulls and bears,” Darrell Cronk, Wells Fargo’s chief investment officer at Wells Fargo, told CNBC’s “Squawk on the Street.” “The low level may not be on this kind of correction yet.”

Nasdaq is about 15% from its highest. Russell 2000, the small-cap benchmark, is in a bear market, down 19.9% ​​from its intraday record.

With January ending on Monday, the S&P 500 is in its weakest month since March 2020, down 7%. Dow may see its worst month since October 2020.

The market’s fear meter, the Cboe Volatility Index, rose to its highest level since October 2020, trading above 30 earlier in the week.

Stock options and investment trends from CNBC Pro:

Investors continued on Friday to digest the Federal Reserve’s focal point for a tighter policy.

The Federal Open Market Committee indicated on Wednesday that it is likely to raise interest rates soon for the first time in more than three years as part of a broader tightening of historically easy monetary policy. Markets are now pricing five-quarter percentage point rate hikes in 2022, although long-term interest rate expectations have changed slightly.

“As announced, this week was dominated by the Fed meeting and analysis of its Wednesday statement and comments by Fed Chairman Powell,” said Chris Hussey, CEO of Goldman Sachs, in a note. “And on Friday, the Fed’s hawkish tilt received, as expected, support from another high-inflation print.”

December’s core price index for personal spending, the Fed’s favorite inflation gauge, rose 4.9% from the year before, the Department of Commerce reported Friday. The PCE jump is higher than economists expected and the warmest reading since September 1983. Along with inflation figures, personal income rose 0.3% for the month, slightly below the 0.4% estimate.

—CNBC’s Jeff Cox and Michael Bloom contributed to this report.

.

Leave a Comment