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Wall Street rallies as growth stocks rebound, Twitter falls; Dow up 370 pts

Growth stocks such as Apple Inc, Google-owner Alphabet Inc, Amazon.com and Nvidia Corp gained between 2.2% and 6.5% after falling for most of the week.

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Wall Streets | Twitter | Dow Jones

Reuters 

Wall Street
Wall Street has gyrated wildly this week on fears that the Ukraine war, surging inflation, COVID-19 lockdowns in China and hawkish Federal Reserve policy moves could spark a global economic slowdown.

Growth stocks led a rebound in Wall Street's main indexes on Friday at the end of a week marred by worries about the worsening outlook for economic growth, while sank after Elon Musk put his deal for the social media company on hold.

All the 11 major S&P sectors advanced in early trading, with technology and consumer discretionary stocks rising 2.7% and 3.3%, respectively.

Growth stocks such as Apple Inc, Google-owner Alphabet Inc, Amazon.com and Nvidia Corp gained between 2.2% and 6.5% after falling for most of the week.

Wall Street has gyrated wildly this week on fears that the Ukraine war, surging inflation, COVID-19 lockdowns in China and hawkish Federal Reserve policy moves could spark a global economic slowdown.

Fed Chair Jerome Powell repeated on Thursday his expectation that the central bank will raise interest rates by half a percentage point at each of its next two policy meetings while pledging "we're prepared to do more" if data turns the wrong way.

Money are pricing a 73% chance of a 75 basis point hike by the Fed in June.

The S&P 500 index on Thursday came within striking distance of confirming a bear market after swooning from its all-time high reached on Jan. 3. The tech-heavy is already in a bear market, down 25.3% from its record close in November last year.

"I think the S&P 500 nearing bear territory is a signal to buy," said Sylvia Jablonski, CEO at Defiance ETFs. "We haven't seen the level of dip buying that we have historically, but I suspect that's going to change in the near term." At 10:12 a.m. ET, the Industrial Average was up 376.41 points, or 1.19%, at 32,106.71, the S&P 500 was up 73.53 points, or 1.87%, at 4,003.61, and the Composite was up 333.48 points, or 2.93%, at 11,704.44.

Losses this week have put the benchmark S&P 500 on course for its sixth straight weekly loss, while the blue-chip Dow and were looking at a seventh consecutive weekly fall.

Inc was among the biggest losers on Friday, slumping 10% after Tesla chief Elon Musk said the $44-billion deal to buy the micro-blogging platform was "temporarily on hold" even as he said he is committed to the acquisition.

Tesla Inc jumped 4.6%.

Robinhood Inc surged 21% after Samuel Bankman-Fried, the chief executive and founder of cryptocurrency exchange FTX, revealed a 7.6% stake in the brokerage app company.

Occidental Petroleum climbed 6.3% after Warren Buffett's Berkshire Hathaway disclosed buying more shares of the oil company this week.

Advancing issues outnumbered decliners by a 5.50-to-1 ratio on the NYSE and a 4.70-to-1 ratio on the Nasdaq.

The S&P index recorded 1 new 52-week high and 30 new lows, while the Nasdaq recorded 3 new highs and 264 new lows.

(Reporting by Devik Jain, Bansari Mayur Kamdar in Bengaluru; Editing by Sriraj Kalluvila and Aditya Soni)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, May 13 2022. 20:19 IST
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