Stocks rebounded after five straight days of losses on Friday in response to a new round of bank earnings, even as the fear of 100-basis-point interest-rate hike looms.
The Dow Jones Industrial Average jumped 658.09 points, or 2.1%, to close at 31,288.26, snapping a five-day losing streak. The S&P 500 rose by 72.78 points, or 1.9%, to finish at 3,863.16. The Nasdaq Composite gained 201.24 points, or 1.8%, to end at 11,452.42, booking gains for a second consecutive day.
The yield on the benchmark 10-year Treasury note fell 2.8 basis points to 2.929% Friday for a weekly decline of 16.9 basis points.
The consumer price index (CPI) rose 9.1% from a year earlier, the largest gain since the end of 1981, the Bureau of Labor Statistics reported on Wednesday. Dow Jones expected the inflation measure to be around 8.8%.
The red-hot inflation reading would strengthen the Federal Reserve’s resolve to raise interest rates aggressively, which would risk overturning the economic expansion.
Market movers
Shares of Citigroup (NYSE: C) surged 13.2% after it reported upbeat revenue for Q2. Shares of Wells Fargo & Co. (NYSE: WFC) jumped 6.2% after announcing its quarterly results.
Shares of social media platform Pinterest Inc. (NASDAQ: PINS) soared16.2% on reports that Elliott Management, a large activist investor, had taken a stake in it.
Also read:
US inflation jumps to 9.1%, highest rate since 1981 as consumer pressures intensify
Fed raises interest rates by 75 basis points