Stocks rally, but still mark their 6th straight losing week

May 12, 2022, 11:51 AM | Updated: May 13, 2022, 2:13 pm
FILE - The New York Stock Exchange operates during normal business hours in the Financial District,...

FILE - The New York Stock Exchange operates during normal business hours in the Financial District, Wednesday, Oct. 13, 2021, in the Manhattan borough of New York. Stocks are opening higher on Wall Street, Friday, May 13, 2022, but not enough to claw back all the losses the market has taken in this volatile week of trading. (AP Photo/John Minchillo, File)

(AP Photo/John Minchillo, File)

NEW YORK (AP) — Wall Street closed out another volatile week of trading with a broad rally Friday, though it wasn’t nearly enough to keep the market from its sixth straight weekly drop, the longest such streak since 2011.

The S&P 500 climbed 2.4%. More than 90% of the companies in the benchmark index closed higher. The Nasdaq rose 3.8% as more gains in technology companies helped lift the tech-heavy index. The Dow Jones Industrial Average rose 1.5%.

The upbeat finish still left the indexes with weekly losses of more than 2.4% each, extending the string of weekly declines to six weeks for the S&P 500 and Nasdaq, while the Dow registered its seventh straight weekly drop.

Markets have been slumping since late March as traders worry that the Federal Reserve may not succeed in its delicate mission of slowing the economy enough to rein in the highest inflation in four decades without causing a recession.

While there have been sudden rallies along the way, including a 2.5% gain for the S&P 500 in late April and a 3% gain in early May, the market has continued to lose ground since setting an all-time high at the start of the year.

That’s not an unusual pattern on Wall Street when indexes are close to entering a bear market, or a decline of 20% or more from their most recent peak. The closest the S&P 500 has gotten to a bear market this year was Thursday, when it ended 18.1% below the peak it reached in January.

“If you look back at how bear markets unfold, they don’t go down every day, all day, all at once until the finish, they have pretty good rallies,” said Tom Martin, senior portfolio manager with Globalt Investments. “This might be one of those big rallies that takes you back up somewhat before the market turns back down again.”

The S&P 500 rose 93.81 points to 4,023.89. The index is now down 15.6% for the year. The Dow gained 466.36 points to 32,196.66, while the Nasdaq rose 434.04 points to 11,805.

Smaller company stocks also staged a solid rally. The Russell 2000 gained 53.28 points, or 3.1%, to 1,792.67.

Twitter fell 9.7% after Tesla CEO Elon Musk said he was putting his deal to acquire the social media company on hold. Tesla rose 5.7%.

Businesses have been struggling to keep up with increased demand for a wide range of products and goods amid supply chain and production problems. They’ve been raising prices on everything from food to clothing, which has been putting pressure on consumers and raising concerns about a pullback in spending and slower economic growth.

The Fed is attempting to temper the impact from rising inflation by pulling its benchmark short-term interest rate off its record low near zero, where it spent most of the pandemic. It also said it may continue to raise rates by double the usual amount at upcoming meetings. Investors are concerned that the central bank could cause a recession if it raises rates too high or too quickly.

The Labor Department issued reports this week that confirmed persistently high consumer prices and wholesale prices that affect businesses.

“There’s a lot of issues and rising inflation with a tightening Fed is not the greatest of market conditions, but at some point it’s priced in,” said Jay Hatfield, CEO of Infrastructure Capital Advisors.

Meanwhile, China’s decision to lock down major cities amid worries about a COVID-19 resurgence have further strained supply chains and Russia’s invasion of Ukraine raised already high energy and food costs globally.

Technology stocks led the gains Friday. Apple rose 3.2% and Microsoft rose 2.3%. The sector has been behind much of the broader market’s volatility throughout the week and has been slipping overall as investors prepare for higher interest rates, which tend to weigh most heavily on the priciest stocks.

Retailers and communications companies also made solid gains. Amazon jumped 5.7% and Google’s parent rose 2.8%.

Bond yields rose significantly. The yield on the 10-year Treasury rose to 2.93% from 2.82% late Thursday.

The price of U.S. crude oil rose 4.1% to settle at $110.49 per barrel. It’s up about 50% for the year.

Investors have also been focusing on the latest round of corporate earnings to gain more insight into how inflation is impacting businesses and consumers. Several major retailers will report their results next week, including Walmart, Target and Home Depot.

Bitcoin steadied around $30,000 late Friday after dropping to around $25,420 earlier this week, its lowest level since December 2020, according to CoinDesk. Only six months ago it was over $66,000.

___

Veiga reported from Los Angeles.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

14 guards indicted on misconduct charges at women’s prison

TRENTON, N.J. (AP) — A New Jersey grand jury has indicted 14 corrections officers on charges stemming from what authorities said was a brutal attack in 2021 on inmates at the state’s only prison for women. The grand jury handed up the indictments after a more than yearlong investigation into the events at the Edna […]
1 day ago
FILE - In this aerial photo taken with a drone, workers in protective suits continue to clean an oi...
Associated Press

New report: Oil spills from offshore transportation way down

NEW ORLEANS (AP) — Oil and natural gas spills from tankers and pipelines in U.S. waters dropped dramatically from the last decade of the 1990s to the one from 2010 through 2019, according to a federal report Wednesday. The amounts spilled and dumped in wastewater from drilling rigs and production platforms rose, but — if […]
1 day ago
Associated Press

2 children swept away in rain-swollen gully in El Salvador

SAN SALVADOR, El Salvador (AP) — Two children drowned in eastern El Salvador after being swept away in a rain-swollen gully on their way home from school. El Salvador’s Civil Defense agency said a third child was rescued and taken to a hospital for medical attention. Residents of the area eventually recovered the two victims’ […]
1 day ago
FILE - Katie Couric appears at the Vanity Fair Oscar Party on March 27, 2022, in Beverly Hills, Cal...
Associated Press

Katie Couric says she’s been treated for breast cancer

NEW YORK (AP) — Katie Couric said Wednesday that she’d been diagnosed with breast cancer, and underwent surgery and radiation treatment this summer to treat the tumor. Couric, who memorably was tested for colon cancer on the “Today” show in 2000, announced her diagnosis in an essay on her website, saying she hoped it would […]
1 day ago
Rabbi David Wolpe speaks to congregants at Sinai Temple Friday, Sept. 23, 2022, in Los Angeles. One...
Associated Press

Clergy strive to reconcile politically divided congregations

One member of Rabbi David Wolpe’s diverse congregation left because Wolpe would not preach sermons criticizing Donald Trump. Scores of others left over resentment with the synagogue’s rules for combating COVID-19. But Wolpe remains steadfast in his resolve to avoid politics when he preaches at Sinai Temple in Los Angeles. “It is not easy to […]
1 day ago
Associated Press

Guinea opens trial over 2009 army massacre of protesters

CONAKRY, Guinea (AP) — Guinea opened a landmark trial Wednesday 13 years after a stadium massacre by the military left at least 157 protesters dead and dozens of women raped, with the country’s former coup leader Moussa “Dadis” Camara among those charged. The court proceeding began a day after Camara and five more defendants were […]
1 day ago

Sponsored Articles

Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
...

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!
...

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
Stocks rally, but still mark their 6th straight losing week