Nasdaq and S&P 500 end up sharply, fueled by inflationary optimism

Nasdaq and S&P 500 end up sharply, fueled by inflationary optimism

  • Growth stocks lead value, Nasdaq rebounds
  • The Nasdaq and the S&P 500 gain for the second day
  • End of indices: S&P 500 +0.93%, Nasdaq +1.88%, Dow +0.10%

Nov 11 (Reuters) – The S&P 500 and Nasdaq ended sharply higher on Friday, extending a rally that began the day before after low inflation raised hopes that the Federal Reserve would become less aggressive with interest rate hikes. interest in the United States.

Amazon (AMZN.O) jumped 4.3%, with Apple (AAPL.O) and Microsoft (MSFT.O) up more than 1% and contributing to the Nasdaq gain.

On Thursday, the S&P 500 and Nasdaq posted their biggest daily percentage gains in more than 2½ years, with annual inflation slipping below 8% for the first time in eight months.

Declines in healthcare stocks limited the Dow Jones Industrial Average’s gain, with UnitedHealth Group (UNH.N) down 4.1% for the day.

“What we’re really seeing today is just a follow-up to yesterday. There’s a lot of cash in the pipeline that’s being put to work,” Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder told Reuters. New York.

“Maybe this signals that some type of bottom is being put in the market, some type of line drawn in the sand. But even if we place a bottom, we are a long way from setting new highs,” said Ghriskey said.

Investors see an 81% chance of a 50 basis point rate hike in December and a 19% chance of a 75 basis point hike, according to CME tool Fedwatch.

Adding to some jitters on Wall Street, crypto exchange FTX said it would begin bankruptcy proceedings in the US and CEO Sam Bankman-Fried resigned due to a liquidity crunch that has provoked the intervention of regulators around the world.

The S&P 500 climbed 0.93% to end the session at 3,993.05 points.

The Nasdaq gained 1.88% to 11,323.33 points, while the Dow Jones Industrial Average rose 0.10% to 33,749.18 points.

Volume on US exchanges was relatively strong, with 13.5 billion shares traded, compared to an average of 12.0 billion shares in the previous 20 sessions.

Of the 11 S&P 500 sector indices, six advanced, led by energy (.SPNY), up 3.07%, followed by a 2.48% gain in communication services (.SPLRCL) .

The S&P 500 Growth Index (.IGX), which includes interest-rate-sensitive tech stocks, rose 1.6%, beating the value index’s 0.3% gain (.IVX) .

For the week, the S&P 500 rose 5.9%, the Dow added 4.15% and the Nasdaq jumped 8.1%. It was the S&P 500’s biggest weekly gain since June and the Nasdaq’s biggest weekly gain since March.

Worries about an economic slowdown have hammered Wall Street this year. The S&P 500 remains down about 16% year-to-date, on track for its biggest annual decline since 2008.

U.S.-listed shares of Chinese companies rose, with Alibaba Group Holding Ltd gaining 1.4% after China eased some of its strict COVID-19 rules.

Advancing issues outnumbered declining ones in the S&P 500 (.AD.SPX) by a ratio of 1.7 to one.

The S&P 500 posted 22 new highs and no new lows; the Nasdaq recorded 102 new highs and 110 new lows.

Reporting by Shubham Batra, Sruthi Shankar, Devik Jain, Bansari Mayur Kamdar and Shashwat Chauhan in Bengaluru, and Noel Randewich in Oakland, California; Editing by Shounak Dasgupta, Arun Koyyur and David Gregorio

Our standards: The Thomson Reuters Trust Principles.

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