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Following a significant downturn in the previous session, stocks rebounded on Friday. This upward movement led the Dow Jones Industrial Average and the S&P 500 to hit new intraday highs.
Despite some ground lost towards the close, the major indices maintained strong positive finishes. The Dow gained 247.15 points or 0.6%, closing at 40,000.90. The Nasdaq rose by 115.04 points or 0.6%, reaching 18,398.45, while the S&P 500 climbed 30.81 points or 0.6%, ending at 5,615.35.
For the week, the Dow surged 1.6%, the S&P 500 increased by 0.9%, and the Nasdaq edged up by 0.3%.
The recovery on Wall Street was fueled by traders capitalizing on lower stock prices following Thursday's steep decline, which was partly due to a sell-off in major tech stocks like Nvidia (NVDA).
Nvidia's shares rebounded by 1.5% after a sharp 5.6% drop in the previous session.
Optimism about the interest rate outlook persisted, despite the Labor Department releasing data showing a higher-than-expected increase in U.S. producer prices for June.
The Labor Department reported that the producer price index (PPI) for final demand rose 0.2% in June, following a revised unchanged figure in May. Economists had anticipated a 0.1% increase, as opposed to the originally reported 0.2% decline for the previous month.
Additionally, the annual rate of producer price growth accelerated to 2.6% in June, up from a revised 2.4% in May. This was above the expected rise to 2.3% from the previously reported 2.2%.
In contrast to the broader market gains, Wells Fargo (WFC) shares plummeted after the bank reported weaker-than-expected net interest income for the second quarter.
JPMorgan Chase (JPM) and Citigroup (C) also saw declines following their quarterly earnings reports.
**Sector Highlights**
Networking stocks maintained their upward momentum from Thursday, pushing the NYSE Arca Networking Index up by 1.6% to its highest closing level in over two years.
Housing stocks showed considerable strength, with the Philadelphia Housing Sector Index rising by 1.6% to a nearly two-month high.
Semiconductor stocks rebounded significantly, as evidenced by the Philadelphia Semiconductor Index's 1.3% increase.
Other sectors, including steel, oil services, and computer hardware, also experienced notable gains.
**Global Markets**
Asian-Pacific markets had a mixed day on Friday. Japan's Nikkei 225 Index dropped by 2.5%, while Hong Kong's Hang Seng Index surged by 2.6%.
In Europe, major markets closed higher. The French CAC 40 Index gained 1.3%, the German DAX Index rose by 1.1%, and the U.K.'s FTSE 100 Index increased by 0.4%.
In the bond market, U.S. Treasury yields showed minimal movement following a sharp increase in the previous session. The yield on the benchmark ten-year note edged down slightly to 4.189%.
**Looking Ahead**
Next week's trading will likely be influenced by reports on retail sales, industrial production, import and export prices, and housing starts.
Earnings announcements will also be in focus, with key companies such as Goldman Sachs (GS), Bank of America (BAC), Morgan Stanley (MS), UnitedHealth (UNH), Netflix (NFLX), and American Express (AXP) scheduled to report their quarterly results.
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