Stock markets end the quarter on a higher note, but underlying risks remain.
U.S. stocks traded sharply higher Friday, ending a tumultuous week on a positive note as investors looked past trade and geopolitical risks.
The Dow Jones Industrial Average (NYSEARCA:DIA) jumped 57.39 points, or 0.2%, to 24,273.45.
The broader S&P 500 Index (NYSEARCA:SPY) advanced 0.1% to 2,718.44. Nine of 11 primary sectors contributed to the rally, with energy and materials leading.
Meanwhile, the technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) notched gains of 0.1% to close at 7,510.30.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) fell 5% to close at 16.01. The so-called “fear index” declined more than 20% over the second quarter.
Nervous investors exited U.S. stocks at a near-record pace during the past week, a sign the trade risks continued to loom large. The S&P 500 and Dow have been unable to recover their record highs since the first wave of selloffs hit the market in February. As of Friday, both indexes have been in correction for 99 consecutive trading days, the longest streak since the 2008 financial crisis.
In economic data, a key measure of U.S. consumer inflation hit a six-year high in May, giving the Federal Reserve the green light to continue raising interest rates.
The core personal consumption expenditure (PCE) index rose 2% annually in May, finally hitting the Fed’s target after perpetually undershooting it since April 2012.
The Final Word: Despite Friday’s rally, an uncertain trade picture continues to weigh on investors’ sentiment. Wall Street may enjoy some reprieve in the coming weeks as corporate earnings season get underway.