Stocks rose on Friday, as traders try to regain some of the ground they lost in the previous session.
The Dow Jones Industrial Average rose 80 points, or 0.3%. The S&P 500 rose 0.4% and the Nasdaq Composite hovered just above the flat line.
Major indexes fluctuated on Friday morning after the core PCE price index, the Fed’s preferred measure of inflation, It came in a little hotter than economists expected On a yearly basis, which indicates persistent inflation despite the Fed’s efforts to fight it.
“Today, investors have to deal with a weaker-than-expected durable orders reading which was offset by a weaker-than-expected PCE reading for November,” said Sam Stovall, chief investment analyst at CFRA Research.
He added, “The pre-holiday trading day may be more volatile than usual, due to light trading volume, which should continue into the short holiday week between Christmas and New Year.”
Friday’s moves came on the heels of another bearish session for markets as the December sell-off resumed and hopes for a rally in Santa Claus faded. On Thursday, the Dow fell 348.99 points, or 1.05%, but closed off a low of 803 points. The S&P 500 and Nasdaq Composite dove 1.45% and 2.18%, respectively.
The S&P 500 is now down more than 1% this week, on track for its third straight weekly decline. Meanwhile, the Nasdaq Composite Index has lost 3% this week. The Dow was the best performer this week, and is currently on track for a loss of less than 1%.
Recession fears have resurfaced recently, dashing some investors’ hope for a year-end rally and leading to big losses in December. Investors are worried that excessive tightening by central banks around the world could force the economy into a contraction.
For the month of December, the S&P 500 lost about 5%, while the Dow and Nasdaq lost more than 6% and 9%, respectively. These would be the largest monthly declines for the major averages since September. The stock is also on track for its worst annual performance since 2008.
