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Dow up, but stocks on target for sixth straight losing week

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Wall Street found some relief on Friday as major stock indexes bounced from a brutal week of selling — but markets still ended lower for the sixth consecutive week.

Rattled by a surprisingly stiff monthly inflation number and a cataclysmic selloff in cryptocurrencies this week, investors have grown increasingly concerned whether Federal Reserve chairman Jay Powell will have the opportunity to engineer a soft landing for the US economy with a series of rate hikes in the approaching months.

The Dow Jones Industrial Average on Friday rose 466.36 points, or 1.47%, to 32,196.66 and the Nasdaq rose 3.8%. Each indexes finished with weekly losses.

The S&P 500 was up 2.4%. The benchmark posted its sixth straight losing week, something that hasn’t happened since 2011.

Technology stocks led the gains. 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 higher rates of interest are likely to weigh most heavily on the priciest stocks.

The markets proceed to be weighed down by record levels of inflation in addition to the continuing Russian war in Ukraine.REUTERS

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

Jordan Waldrep, the chief information officer for Dallas-based TrueMark Investments, told The Post that the market slide is the results of a confluence of things that together make up an ideal storm — inflation, Russia’s invasion of Ukraine, supply chain disruptions, and the continuing COVID-19 pandemic.

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“Put all of it together and you’re vulnerable to a correction,” Waldrep told The Post.

“Vulnerable enough to show the ship and begin a unload.”

When asked if there’s light at the tip of the tunnel for investors, Waldrep said that while he was optimistic for the long run, Wall Street could expect to see more turbulence within the near future.

“I don’t know if we’re experiencing an orderly correction or the beginning of something larger,” he said.

“Thus far, the selloff has been fairly orderly but now we have yet to see an actual blow out trading day with increased volatility and big volumes that always marks the tip of those corrections.”

Waldrep said that the Federal Reserve’s climbing of rates of interest “pushed the market to take among the air out of the balloon.”

“As painful as this has been for investors, I feel it has been a healthy selloff so far,” he said. “I’d prefer to see the market find some footing and begin to rebuild from these levels.”

Mark Andraos, an associated portfolio manager at Regency Wealth Management, told The Post that the selloff was the results of the stock market “pricing in significant uncertainty as as to whether the Fed can engineer a soft landing and never tip the economy into recession.”

“The silver lining is that corporate earnings have been strong and stock market valuations are more attractive than they were pre-pandemic, organising selective opportunities so as to add to prime quality firms which have sold off,” he said.

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