Nasdaq jumps 3.8% as US stocks pare weekly losses
US stocks rallied Friday to close higher and see the major indexes pare weekly losses after a brutal sell-off.
As investors head into the weekend, a market analyst has told CNBC that the coming week could see further relief for most beaten-down names.
This, Scott Redler of T3Live.com said, will likely buoy buyers and help the market bounce for a few more days.
While Redler doesn’t think the stock market has bottomed yet, he believes the massive sell-off is likely to see a bounce for the S&P 500. He is looking at a retest of the 4,100-4,200 region. If an “oversold bounce” happens, he noted, stocks likely to rally are those down 70%, 80% from their all-time highs.
Nasdaq leads US indexes’ Friday bounce
The S&P 500 closed at 4,023.86 for daily gains of 2.39%, moving higher after Thursday’s downturn that had pushed the benchmark index to lows of 3,858. While the S&P 500 bounced Friday, it ended the week -1.4% and -16% year-to-date (YTD).
The Dow Jones Industrial Average also closed higher, adding more than 465.64 points, or 1.47% to snap a six-day losing streak. The Dow ended the week 1.5% down and remains -12% YTD.
Meanwhile, the Nasdaq Composite edged 3.82% higher, with buy-side pressure in the tech sector (+3.4%) helping the index cut weekly losses to roughly 1%. The index is however down more than 25% in 2022.
All the sectors were in the green, with consumer discretionary up 4.1%, energy +3.4%, and communication services +2.5%.
What else to watch next week in stocks
Apart from an expected oversold bounce, the week ahead will also see investors watch for commentary from US Federal Reserve officials. Key among the officials will be Fed Chair Jerome Powell’s speech at a Wall Street Journal conference on Tuesday.
The calendar also has retail sales, manufacturing, and home sales data for investors to chew through over the week.
Other than that, earnings season will continue, with some highlight companies being Walmart, Home Depot, Kohl’s, Target, Cisco Systems, JD.com, and Deere.
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