US markets break three-week slump with strong close on Friday

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License picture” alt=”US markets ended the week strong on Friday, with all three major indices posting weekly gains for the first time in a month. File photo by John Angelillo/UPI | License picture“/>

US markets ended the week strong on Friday, with all three major indexes posting weekly gains for the first time in a month. File photo by John Angelillo/UPI | License picture

September 9 (UPI) — US markets ended the week on Friday after a third day of gains snapped a three-week slump.

The Dow Jones Industrial average gained 377.19 points, or about 1.19%, to close at 32,151.71. The S&P 500 rose 61.18 points, or 1.53%, closing at 4,067.36, while the Nasdaq Composite climbed 250.18 points, or 2.11%, closing at 12,112.31.

Friday’s strong finish pushed the Dow Jones up 2.84% for the week, while the S&P 500 and Nasdaq rose 3.83% and 4.2% respectively, CNBC reported.

Markets have been volatile after substantial interest rate hikes at the last three Federal Reserve policy meetings pushed the federal funds rate down to a range between 2.25% and 2.5%.

“The case for the current bear market is that the Fed will continue to tighten monetary policy, take liquidity out of the market and cause equities to plummet,” David Donabedian, chief investment officer of CIBC Private Wealth US, told CNBC.

“But the market rally this week showed that the economy continues to hold up, supported by favorable economic reports,” he said.

Donabedian said he expects a series of setbacks and recoveries before the next bull market.

The resilience of US companies has translated into strong results.

Kroger announced a stronger than expected second quarter earnings Friday, with sales up 5.4% to $34.64 billion. Kroger shares rose 7.4%, closing at $51.94.

Other companies that finished the week strong included cloud security company Zscaler Inc., which rose 21.88% on Friday, and e-signature company DocuSign Inc., up 10.51%.

Federal Reserve Chairman Jerome Powell reiterated his intention to continue to fight inflation with higher interest rates when addressing inflation during a keynote address at the Cato Institute on Thursday.

“For investors, the bottom line is that the central bank shock — especially from the Fed — is not over,” Bank of America said. economists have written. “That means more pressure on interest rates, more weakness in risk assets and even more bullishness for the super strong dollar.”