U.S. stocks rallied Friday as Wall Street caps off a strong weekly performance, recovering from a Federal Reserve-induced slump.
The Dow Jones Industrial Average gained 425 points, or about 1.34%. The S&P 500 and Nasdaq Composite climbed 1.61% and 2.05%, respectively.
Shares of DocuSign surged more than 10% after the electronic agreements company reported an earnings beat. The company also issued a third-quarter revenue forecast that was above expectations.
All three major averages are on pace to snap a three-week losing streak. The Dow is up 2.84% on the week, while the S&500 is up 3.83% and the Nasdaq Composite is 4.22% higher.
Stocks have been volatile recently as expectations of a 0.75 percentage point rate hike this month grew on Wall Street, after the Federal Reserve Chair Jerome Powell said again that he is “strongly committed” to bringing down inflation.
“The case for the ongoing bear market is that the Fed will continue to tighten monetary policy, withdraw liquidity from the market and cause a tailspin for equities,” said David Donabedian, chief investment officer of CIBC Private Wealth US. “But this week’s market recovery has shown there is continued resilience in the economy bolstered by favorable economic reports.”
Still, Donabedian added that he does not think stocks have reached the bottom of the bear market yet.
“Indeed, the journey to the next bull market will take time, and will be marked by a series of set-backs and recoveries,” he said.