Wall Street closes with its first weekly rise since mid-August

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U.S. stocks rose on Friday with major indexes posting their first weekly gain in four weeks as investors bought back despite concerns about the economic outlook.

* The gains follow a sharp decline that began in mid-August, triggered by concerns about the impact of tighter monetary policies and signs of an economic slowdown in Europe and China.

* Analysts say this week’s market rally is more related to previous overselling. Uncertainty remains high about inflation and the aggressiveness of the Federal Reserve.

* “It’s not surprising that we’re going to have a bounce like we’re having, as a lot of this is technical,” said Jack Janasiewicz, principal strategist and portfolio manager at Natixis (NYSE: 99V33V1Z3=MSIL ) Investment Managers Solutions.

* “I wouldn’t be surprised if we started the week a little stronger and then settled down and eased a bit as we prepare for the CPI,” he added of next week.

* Investors await the consumer price (CPI) report for August, due on Tuesday, for signs that inflation may be fading. Prices are expected to rise at a rate of 8.1% in August, up from 8.5% in July.

* Wells Fargo (NYSE: WFC ) economists expect headline inflation to post its biggest monthly decline since the peak of the pandemic in April 2020, helped by a pullback in gas prices.

* All 11 major S&P sectors traded higher on Friday, with communication services, technology, energy and consumer discretionary in the lead.

* High-growth stocks, which have been hit since the beginning of the year by concerns about rising interest rates, rose during the week.

* Fed Chairman Jerome Powell said Thursday that the central bank is “strongly committed” to reining in inflation, but hope remains that it can be done without the “soaring social costs” of previous fights against it. inflation.

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* Based on preliminary data, the gained 61.44 points, or 1.53%, to finish at 4,067.62, while thE advanced 249.94 points, or 2.12%, to 12,113, 19. The Dow Jones Industrial Average rose 384.54 points, or 1.21%, to 32,157.88.

* For the week, according to preliminary data, the Dow Jones rose 2.7%, the Nasdaq 4% and the S&P 500 3.6%.

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