U.S. stocks bounced back on Friday, recovering from a break in the S&P 500’s longest winning streak in two years.
The Dow Jones Industrial Average (DJIA) closed approximately 391 points higher on Friday, representing a 1.2% increase and reaching around 34,283, according to preliminary data from FactSet. Meanwhile, the S&P 500 index gained 1.6%, and the Nasdaq Composite Index advanced 2.1%.
Treasuries Yield Pullback Boosts Market Rally
The surge in stock prices was driven by a retreat in the 10-year Treasury yield, which decreased from 4.614% to 4.627% as of 3 p.m. Eastern. Despite the pullback, the treasury yield still recorded a weekly advance.
Fed Poses Caution, Yet Stocks Continue to Grow
Federal Reserve Chairman Jerome Powell’s remarks on the need for higher rates to control inflation temporarily dampened the equity rally. However, stocks managed to rally nevertheless.
The S&P 500 achieved a weekly gain of 1.3%, while the Dow experienced a 0.7% rise and the Nasdaq advanced by 2.4%. This marked back-to-back weekly wins for all three equity indexes.