U.S. stocks rose Thursday after an intraday comeback as the three major indexes each snapped two-day losing streaks.
The Dow Jones Industrial Average added 435.05 points, or 1.3%, to close at 33,248.28. The S&P 500 gained 1.8% to 4,176.82. The tech-heavy Nasdaq Composite advanced 2.7% to 12,316.90.
The three averages are now on pace for a positive week. The Dow is up 0.1%. The S&P 500 inched up 0.5%, and the Nasdaq Composite rose 1.5% week to date.
“Bearish sentiment remains overdone, and a lot of the upcoming profit warnings should mostly be already priced in. Stocks should start to eventually push higher this summer as economic activity moderates,” said Edward Moya, senior analyst with OANDA.
The indexes are now solidly off their lows of the year. The Dow is 8.5% higher. The S&P 500 is up 9.6%, and the Nasdaq Composite rallied 11.6% from their respective 52-week lows.
Thursday saw another rocky session on Wall Street with the stock averages oscillating between losses and gains. The Dow was down more than 300 points at its lows of the session.
“The market is on pins and needles waiting to find out if inflation will come down and give us some respite from the Fed rate hike regimen. That’s why we have this choppiness. It’s a period of great uncertainty,” Barry Bannister, Stifel chief equity strategist, said.
Fed Vice Chair Lael Brainard on Thursday said it is unlikely the central bank will take a break from its current rate hiking cycle anytime soon.
“Right now, it’s very hard to see the cause for a pause,” Brainard told CNBC’s Sara Eisen during a “Squawk on the Street” interview. “We’ve still got a lot of work to do to get inflation down to our 2% target.”
