By Stephen Culp
NEW YORK (Reuters) -Wall Street closed on Friday with a strong rebound, thus ending a volatile week, in which signs of recovery in the economy were faced with growing fear of inflation.
* All three major US indices extended gains on Thursday, when the S&P 500 posted its biggest daily percentage gain in more than a month.
* “Today is a day when everything goes up because everyone is buying,” said Chuck Carlson, senior vice president at Wealthspire Advisors. “It is a day to buy everything.”
* Even so, the indices suffered their biggest weekly declines since late February.
* “This week, given the big swings, it is more evident that there is an environment of traders than long-term investors,” added Carlson. “It is a market looking for its next sustained momentum.”
* The large swings were fueled by economic data, which fueled concerns that short-term price increases will translate into long-term inflation, despite warranties to the contrary from the US Federal Reserve.
* “Inflation remains the biggest concern,” added Carlson. “And when interest rates failed to hit new highs, the bulls took over and investors are willing to step in and buy some of the stocks that had been hit this week.”
* Economic data showed stagnant growth in retail sales and a decline in consumer confidence, as prices continue on an upward trajectory, suggesting that although the demand boom could be taking a breathe, inflation has not.
* But in an indication that economic activity could return to normal, revised guidance from the U.S. Centers for Disease Control and Prevention said that fully vaccinated people no longer need to wear face masks outdoors and can avoid use them indoors in most places.
Continue reading the story
* The Dow Jones Industrial Average rose 360.68 points, or 1.06%, to 34,382.13 units, while the S&P 500 gained 61.35 points, or 1.49%, to 4,173.85 units. The Nasdaq added 304.99 points, or 2.32%, to 13,429.98 points.
* The top 11 S&P sectors ended the session with gains.
(Edited in Spanish by Carlos Serrano)