Wall Street Up 3rd Straight Week as Dow, S&P500 at Record Heights Despite Volatile Session
NEW YORK, October 22 (Sputnik) - US stocks ended up for a third straight week, with the Dow Jones Industrial Average and S&P 500 indexes hitting record highs on Friday, despite volatility triggered by comments about the Federal Reserve’s impending stimulus taper and rate hike.
The Dow, which groups mostly industrial stocks, eked out a gain in Friday’s trade despite tumbling from the day’s peaks.
The S&P 500, which consists of the top 500 US stocks, closed in the negative after also posting a record high too.
The Nasdaq Composite Index, which lists the marquee names in Big Tech, also fell, after an all-time high in the previous session.
All three indexes were, however, rose for the week, extending their winning streak for a third week in a row.
Wall Street had a mixed Friday after Federal Reserve Chair Jerome Powell confirmed the central bank’s plans to start tapering its monthly stimulus of $120 billion between November and December, while holding out on giving a timeline for rate hikes.
“Powell prepared markets for [the eventuality] that rate hikes will happen if they are wrong about inflation being transitory,” Ed Moya, analyst at an online trading platform OANDA, said. “Some traders used Powell’s comments to lock in profits, but overall still remain optimistic.”
A flurry of forecast-beating third quarter earnings at US companies had also energized Wall Street all week. Electric car-maker Tesla, banking icon Goldman Sachs, healthcare giant Johnson & Johnson, consumer products behemoth Procter & Gamble and streaming services provider Netflix were among those who reported stellar profits for the quarter.
The Dow closed Friday's trade up 74 points, or 0.2%, at 35,677. It hit a record high of 35,765 earlier. For the week, it rose 1.1%, bringing its cumulative three-week gain to 3.9%.
The S&P 500 index settled down 5 points, or 0.1%, at 4,545. It hit an all-time high of 4,560 earlier. The S&P 500 was up 1.6% for the week, for a compounded three-week gain of 4.3%.
Nasdaq finished the day down 125 points, or 0.8%, at 15,090. It was up 1.3% on the week, for a total three-week rise of 3.6%.