High Yields | Weekly Statement March 6
The week is closing the same way it behaved at the opening on Monday. Although there were some corrections over the course of the week, it ended up being a positive week for the market. At the end of a volatile week, Wall Street rallied on Friday as lower U.S. Treasury yields and positive economic data helped investors ignore the growing possibility that the Federal Reserve will maintain its tightening stance for longer than expected.
The Nasdaq, which is heavily weighted in technology, received a strong boost from the interest rate-sensitive mega-caps that dominate the market, leading the three U.S. stock indexes into positive territory. Following comments from Fed officials that allayed concerns about inflation and interest rates, U.S. Treasury yields declined.
The S&P ended a three-week losing trend, while the Dow posted its first weekly gain since late January, putting the indexes on track to post gains for the week. The benchmark S&P 500 index also broke its 50-day and 200-day moving averages this week, two highly regarded technical benchmarks.
A soft landing
According to some analysts, this morning's numbers suggest a soft landing, and the labor market remains fairly solid. The S&P 500 rose 51.18 points, or 1.29%, to 4,032.53 at 1:56 PM ET, while the Nasdaq Composite rose 189.80 points, or 1.66%, to 11,652.78. The Dow Industrial Average rose 279.29 points, or 0.85%, to 33,282.86.
With the exception of consumer staples, all 11 major sectors of the S&P 500 rose, with communication services and consumer discretionary posting the largest percentage increases.
