Stocks rally at the end of trading, as Dow surges.
U.S. stocks erased a massive slide on Friday to finish firmly higher, although the general outlook on Wall Street remains sour after a highly volatile week.
The Dow Jones Industrial Average (NYSEARCA:DIA) added 330.44 points, or 1.4%, to close at 24,190.90
The broader S&P 500 Index (NYSEARCA:SPY) gained 1.5% to finish at 2,619.61.
Meanwhile, the technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) added 1.4% to 6,874.49.
At their lowest levels Friday, the major indexes traded at three-month lows.
A measure of 30-day volatility known as the CBOE VIX fluctuated wildly in the final session of the week. Wall Street’s preferred measure of investor anxiety traded between 29.15 and 41.06 before closing at 28.67. That’s a decline of around 14% from the previous close.
Stocks barely avoided their worst selloff since the financial crisis as investors cut ties to riskier assets. Equities have been under pressure all week long following a government report showing an unexpected surge in wage inflation.
Stronger inflationary pressures suggest the Federal Reserve could raise interest rates faster than previously expected. The U.S. central bank will hold its next policy meeting in March, where it is expected to raise rates by 25 basis points.
The Final Word: Attention next week shifts back to the economic data, with reports on CPI inflation, producer prices and retails sales.