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Zacks Equity Research
4 min read
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Wall Street closed higher on Friday, pulled up by tech and energy stocks. The S&P 500 finished with its biggest weekly loss since September, but markets rebounded on comments made by Fed Chair Jerome Powell. All of the three most widely followed indexes closed the session in the green.
The Dow Jones Industrial Average (DJI) gained 0.5%, or 222.64 points, to close at 42,801.72. Twenty components of the 30-stock index ended in positive territory, while 10 ended in negative.
The tech-heavy Nasdaq Composite rose 126.97 points, or 0.7%, to close at 18,196.22.
The S&P 500 advanced 31.68 points, or 0.6%, to close at 5,770.20. Nine of the 11 broad sectors of the benchmark index closed in the green. The Utilities Select Sector SPDR (XLU), the Energy Select Sector SPDR (XLE) and the Technology Select Sector SPDR (XLK) gained 1.9%, 1.7% and 1.5%, respectively, while the Financials Select Sector SPDR (XLF) declined 0.5%.
The fear-gauge CBOE Volatility Index (VIX) decreased 6% to 23.37. A total of 16.92 billion shares were traded on Friday, higher than the last 20-session average of 16.23 billion. Advancers outnumbered decliners by a 1.35-to-1 ratio on the NYSE.
Fed Chair Jerome Powell said on Friday that the central bank might decide to wait and watch how President Trump’s tariff policy actions play out before it decides on its monetary policy. With a cloud of uncertainty hanging over Trump’s policies, Powell said that the White House “is in the process of implementing significant policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation. It is the net effect of these policy changes that will matter for the economy and for the path of monetary policy.”
Powell mentioned that “uncertainty around the changes and their likely effects remains high” and that the Fed is “focused on separating the signal from the noise as the outlook evolves. We do not need to be in a hurry, and are well positioned to wait for greater clarity.” While markets had started the session in the red, Powell’s comments seemed to lend some semblance of solidity amid the reigning uncertainty, and stocks rebounded for the day. Energy, utilities and tech stocks made the most of the gains.
Consequently, shares of American Water Works Company, Inc. AWK and Apple Inc. AAPL added 5.2% and 1.6%, respectively. AWK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
