The star index ended on a rise of 0.80% to 34,754.93 points, while the Nasdaq ended on a climb of 2.05% to 13,893.83 points.
The New York Stock Exchange ended the week with a bang, driven by a wave of cheap buying after months of turmoil, and despite the lack of visibility on the conflict in Ukraine.
The Dow Jones signed its fifth session in a row, for the first time since the end of December, gaining 0.80% to 34,754.93 points, while the Nasdaq took 2.05% to 13,893.83 points , and the broader S&P 500 index climbed 1.17% to 4,463.12 points.
In four sessions, the Nasdaq jumped 10.4%. This is the best week for the New York indices since November 2020.
For Tom Cahill, of Ventura Wealth Management, after a long chaotic period, investors “said to themselves that there was an opportunity there that they did not want to miss. And they started to increase their risk exposure.”
With the approach of the end of the quarter, an important period for funds and asset managers, “there will be a rebalancing of portfolios from bonds to equities”, anticipates the analyst.
The recent sharp rise in bond yields reflects a selling trend in this market, where prices move in the opposite direction to rates.
The VIX index, which measures market volatility, fell again on Friday, to its lowest level since mid-February.
Even Wednesday’s rate hike by the US Central Bank (Fed), and the signal of a series of others to come, was not enough to dampen the buying momentum.
“You had a market that had reason to sell but didn’t,” commented Patrick O’Hare of Briefing.com. “No one wants to stand in the way of a train.”
Several values in agony in recent months paraded Friday, including Meta (+ 4.16% to 216.49 dollars), which has taken 16% since Monday, PayPal (+ 5.89%) or Snap (+ 5.98% ).
“For many of these companies, the fundamentals are still excellent,” said Tom Cahill. But because of the prospect of a rate hike, their growth potential seemed diminished, and “many lost 40, 50 or 60%. So there was an opening.
Also considered as growth stocks, Tesla (+3.88%), Nvidia (+6.81%) or Netflix (+2.48%) were also sought.
However, even if the New York market has just had “unquestionably a very good week”, Wall Street has not finished with volatility, warns Patrick O’Hare.
Inflation shows no real sign of slowing down, US growth is decelerating, and the war in Ukraine does not seem likely to find a short-term solution.
Moscow announced on Friday a “reconciliation” of positions between Ukraine and Russia to allow a diplomatic solution to the conflict. But the adviser to the Ukrainian presidency Mykhaïlo Podoliak tempered this assertion, considering that Russia had not changed its initial demands.
“It will remain in the background,” according to Tom Cahill, “and we will have to do day by day, hoping that it will not get worse.”
Listed, FedEx was sanctioned (-3.98% to 218.91 dollars) after the publication of a quarterly net profit below expectations. Thanks to price increases, the courier group managed to improve its margins.
Moderna advanced (+6.34% to 178.93 dollars) after filing an application for authorization for a second booster of the coronavirus vaccine, intended for adults.
The sports equipment manufacturer On Holding AG (+13.92% to 27.83 dollars), in which tennis player Roger Federer is a shareholder, sprinted after the publication of better than expected results and well-received forecasts.