Wall Street delivered a powerful finish to a turbulent week, with major stock indexes surging Friday after days of sharp volatility that tested investors’ nerves and reminded many of the market’s rocky performance in April.
The S&P 500 staged an impressive comeback, initially fluctuating in morning trading before launching into a rally that peaked at nearly 2 percent gains. The benchmark index ultimately closed 1 percent higher at 6,602.99, adding 64.23 points to cap off what had been a challenging trading period.
The Dow Jones Industrial Average delivered an even stronger performance, climbing 493.15 points or 1.1 percent to reach 46,245.41. Meanwhile, the tech-heavy Nasdaq composite gained 195.03 points, finishing 0.9 percent higher at 22,273.08.
Small-cap stocks emerged as Friday’s biggest winners, with the Russell 2000 index of smaller companies surging 64.48 points or 2.8 percent to close at 2,369.59, suggesting renewed investor appetite for risk across market segments.
The Friday rally provided some relief for investors who endured a week marked by the most dramatic hourly price swings since the market selloff in April. Despite the strong finish, the week’s earlier volatility left its mark on overall performance, with the S&P 500 ending just shy of its record high.
Weekly Performance Shows Market Strain
While Friday’s gains helped cushion the blow, the major indexes still posted notable weekly declines. The S&P 500 fell 131.12 points or 1.9 percent for the week, matching the Dow’s 1.9 percent decline as that index dropped 902.07 points.
The Nasdaq faced the steepest weekly losses, tumbling 627.51 points or 2.7 percent, reflecting particular pressure on technology stocks. The Russell 2000 showed more resilience, declining just 18.64 points or 0.8 percent for the week.
Federal Reserve Optimism Fuels Rally
Friday’s market surge gained momentum after comments from a Federal Reserve official suggested potential support for another interest rate cut in December. This prospect of continued monetary easing helped restore investor confidence and provided the catalyst for the afternoon rally that lifted all major indexes into positive territory.
The Fed-driven optimism comes as markets continue to weigh economic data against the central bank’s future policy direction, with investors closely monitoring any signals about the pace and extent of potential rate adjustments.
Year-to-Date Gains Remain Solid
Despite recent volatility, the major indexes maintain strong year-to-date performance that underscores the market’s overall resilience in 2024. The Nasdaq leads the pack with impressive gains of 2,962.29 points or 15.3 percent for the year.
The S&P 500 has added 721.36 points, translating to a healthy 12.3 percent annual gain, while the Dow has climbed 3,701.19 points or 8.7 percent since January. Even the Russell 2000, despite its recent struggles, maintains a positive 6.3 percent yearly advance with gains of 139.43 points.
These year-to-date figures suggest that while weekly volatility may test investor patience, the broader market trends continue to support equity valuations across multiple sectors and market capitalizations.
