U.S. stocks edged higher for a second consecutive session Friday, putting major indexes on track to end a turbulent week roughly where they began.
The S&P 500 rose 0.6%, building on its 1.1% gain a day earlier to push the broad benchmark up 0.2% for the week. The Dow Jones Industrial Average added 265 points, leaving it mostly flat over the past five trading days. The Nasdaq Composite advanced 0.3% and is poised for a 1.1% weekly gain.
The recovery helped erase losses from a painful three-day selloff at the beginning of the week that was fueled by mounting concern that inflation will rise and remain elevated as the economy rebounds. Stocks have been enjoying a reversal though since Thursday’s jobless claims numbers, seen as a proxy for layoffs, fell to a new pandemic low, enticing investors to dip back into risky assets, including growth stocks and cryptocurrencies.
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“There was some relief that the labor market recovery is under way in the U.S. and we’re seeing some nervousness about inflation ebbing away,” said Kiran Ganesh, a multiasset strategist at UBS Global Wealth Management.
Money managers are betting that some sectors—such as banking and energy—could benefit in particular as the economy rebounds to pre-pandemic levels.
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