U.S. stocks rose Friday as the S&P 500 looked to close out its second consecutive positive week.
The Dow Jones Industrial Average gained about 70 points, or 0.2%. The S&P 500 added 0.2%. The Nasdaq Composite was little changed.
For the week, the S&P 500 and Nasdaq are up more than 1% and 2%, respectively. The Dow is marginally higher.
The S&P 500 is now up more than 3% in March, more than erasing its losses since Russia invaded Ukraine late last month.
The rebound has come even as the war in Ukraine continues and the Federal Reserve is set to hike interest rates several more times this year.
“Equities are rallying despite a hawkish Fed and stagflation concerns, as many believe there is no alternative to stocks,” said Mark Haefele, chief investment officer at USB Global Wealth Management.
Fed Chair Jerome Powell on Monday vowed to be tough on inflation. The remarks came after the Fed raised interest rates for the first time since 2018last week, with hikes coming at each of the six remaining policy meetings this year.
Powell on Monday noted rate hikes could go from the traditional quarter-percentage-point moves to more aggressive half-point increases if necessary.
The central bank chief’s comments led Wall Street to raise rate hike expectations, with firms from Goldman Sachs to Bank of America penciling in half-point hikes in future Fed meetings this year.
Meanwhile, investors looked to promising signs the economy can run strong even as the Fed tightens monetary policy to address inflation.
First-time jobless claims last week reached the lowest tally since 1969, the Labor Department reported Thursday — the latest sign of a resilient labor market. Economists expect the March jobs report next week to show similar strength.
Traders are keeping an eye on Europe as the Ukraine-Russia war continues. The European Union on Friday struck a gas deal with the U.S.in an effort to reduce its dependency on Russian energy.
The news comes after President Joe Biden said Thursday at a NATO summit in Brussels that the U.S. would respond if Russia used chemical weapons in Ukraine.
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