US equities rose on Friday and ended the week on an upbeat note, led by strong gains in the technology sector.
The S&P 500 (^GSPC) ended Friday up 1.9%, though it still ended the week down 0.7%. The Dow Jones Industrial Average (^DJI) rose 1.0% on Friday. The tech-intensive Nasdaq Composite (^IXIC) closed 2.9% higher, its biggest one-day gain since late November.
The yield on the benchmark 10-year US Treasury Note rose from 3.397% Thursday to 3.482%. The dollar index changed little.
Friday’s gains ended a tough week for Wall Street. Stocks had suffered a series of losses Thursday as investors parsed economic data and corporate earnings, clouding their view of the health of the US economy.
Despite concerns about the economy, markets have been fairly resilient and have been largely up this year, according to JP Morgan’s US Market Intelligence team. However, the team does not believe that a recession is currently priced in in equity markets.
“We disagree with the argument that because a recession is consensual,” the team wrote, “the market and economic outcome must be better.”
For the fourth quarter, the S&P 500 is expected to report a year-over-year decline in earnings of 3.9%, according to data from FactSet Research. This would be the first year-over-year decline in earnings reported by the index since 2020, if realized.
Wall Street navigated another round of data towards the end of the week and Fedspeak which delivered mixed signals about the central bank’s next move. John Williams, president of the Federal Reserve Bank of New York, said Thursday that the central bank has more rate hikes ahead “to sustainably bring inflation back to our target of 2%.”
Lael Brainard, Vice Chairman of the Federal Reserve, and Susan Collins, President of the Federal Reserve Bank of Boston, made similar comments Thursday ahead of the Fed’s next monetary policy meeting, which begins Jan. 31.
However, Philadelphia Fed President Patrick Harker on Friday morning reiterated his position to move to rate hikes of 25 basis points, while Federal Reserve Governor Christopher Waller said on Friday that he also favors a quarter-point rate hike. at the next meeting.
On the economic front, previously owned US home sales fell for an 11th straight month in December, continuing the record decline as high mortgage rates and limited inventory choked affordability.
Contract closes fell 1.5% from November, to an annualized rate of 4.02 million last month, according to data from the National Association of Realtors on Friday. The number of homes for sale fell to 970,000 in the month, with a median sales price of 2.3% from a year earlier.
In company news, Netflix (NFLX) CEO Reed Hastings announced Thursday that he is stepping down. After a two-decade run, he leaves the streaming platform in the hands of co-CEO Ted Sarandos and COO Greg Peters after reporting a strong 2022 finish.
And the era of password sharing will end soon. The streaming giant will enforce password sharing rules “more broadly” by the end of the first quarter of 2023, Netflix announced in its earnings report on Thursday. Shares rose nearly 8% on Friday.
Google parent Alphabet Inc. (GOOG, GOOGL) meanwhile said it is laying off 12,000 employees, or more than 6% of the global workforce, becoming the latest tech company to cut staff after rapid expansions during the pandemic. Shares of Google parent company Alphabet Inc. added nearly 6% on Friday.
Fanatics is in talks to acquire BetParx sportsbook, TBEN reports. The company aims to expand its footprint in the sports betting industry.
Oil prices rose in the commodity market. Brent crude, the global benchmark, rose nearly 1.3% to $83.99 a barrel, and WTI, the US benchmark, added 1.45% to settle at around $81.78. Both ended the week with gains again, driven by optimism about demand recovery in China.
Meanwhile, crypto market Genesis Global Capital filed for bankruptcy protection in the US Bankruptcy Court for the Southern District of New York late Thursday. The move comes after the company failed to raise money for its troubled credit unit in early January and cut 30% of its staff in a fresh round of layoffs.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
Click here for the latest stock market news and in-depth analysis, including stock-moving events
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow up Yahoo Finance Twitter, Facebook, Instagram, Flip board, LinkedInand YouTube