New York, NY – November 11, 2023 – U.S. stocks staged a strong recovery on Friday after Thursday’s steep selloff snapped the S&P 500’s longest winning streak in two years.
The Dow Jones Industrial Average jumped 391.6 points, or 1.2%, to close at 34,283.29. The S&P 500 rose 1.6% to settle at 4,400.33, while the tech-heavy Nasdaq Composite climbed 2.1% to 13,407.63.
The rally was fueled by a pullback in Treasury yields, with the 10-year yield falling to 4.627% after hitting 4.682% on Thursday. Lower yields reduce pressure on stock valuations.
Investors were also encouraged by signs of moderating economic growth. The University of Michigan’s preliminary November consumer sentiment index plunged to 60.4, down from 63.5 in October and below expectations. This indicates consumers are growing more cautious amid high inflation.
“Today’s bounce back shows investors still have an appetite for stocks, but the market remains extremely turbulent,” said Mike Wilson, chief investment officer at Morgan Stanley. “We expect continued volatility as the Fed keeps raising rates to combat inflation.”
All 11 S&P 500 sectors finished higher, with technology stocks among the top gainers. Apple rose 2.4%, Microsoft climbed 2.2%, and Amazon added 2.7%.
While Friday’s rally may offer some relief, analysts say challenges remain. Inflation is still near 40-year highs, interest rates are rising, and recession fears linger. Investors braces themselves for more ups and downs ahead.
