Stocks Cap Best Week of the Year After Early Sell-Off Reversal

US markets closed higher on Friday, securing the best week for stocks since November 2023. This comes after a rally on Thursday that erased losses suffered during the early August sell-off.

Key Developments:

All major indexes gained for the week, with the S&P 500 (^GSPC), Nasdaq Composite (^IXIC), and Dow Jones Industrial Average (^DJI) each up around 0.2% on Friday. This positive performance follows a tumultuous week where concerns about a recession initially triggered a market decline. Reassuring economic data, including a rebound in consumer sentiment and moderating inflation, helped calm investor anxieties.

Thursday’s key economic readings on consumer spending and Walmart’s earnings report indicated consumer resilience. Investors are now less convinced of the need for a drastic 0.50% rate cut from the Federal Reserve and anticipate a more likely 0.25% reduction in September. All eyes are on Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium next week for further guidance on monetary policy.

Notable Events:

FuboTV stock surged after a court blocked the launch of a competitor’s sports streaming service. Gold prices surpassed $2,500 per ounce for the first time due to high inflation, India’s market demand, and geopolitical risks.

Vice President Kamala Harris is expected to detail her economic policy plans in a speech on Friday. Housing starts in the US reached a four-year low in July due to high interest rates.


The stock market rebounded this week, fueled by positive economic data and a revised outlook on potential Fed rate cuts. However, investors remain cautious as they await further developments, particularly from the Jackson Hole Symposium.