Stocks finish higher as investors recoup most of the losses after a big rout

• US stocks rose on Friday, although they fell slightly this week.

• Investors were able to recover most of the losses from Monday’s big sell-off.

• Investors will be looking at key inflation data next week, with the consumer price index due out on Wednesday.

U.S. stocks rose on Friday but ended with their fourth straight weekly loss.

A surge in volatility on Monday led to stock market whiplash this week, leaving investors reeling the carry trade in the yen is calming down and concerns a potential economic slowdown.

The swings throughout the week – with the S&P 500 posting its worst day since 2022 on Monday and its best day in that same period on Thursday – made for the most volatile trading week of 2024.

The roller coaster ended Friday with shares modestly higher after struggling to gain at the start of the session.

A muted weekly report on unemployment benefits on Thursday helped push shares higher for their biggest gain in almost two years as sentiment around the economy and labor market improved after investors panicked following last week’s July jobs report.

“Market narratives can change quickly, but they are not always accurate. This has happened many times this cycle and it will happen again. Don’t make investment decisions based on a single indicator or number,” said Raymond James, CIO Larry Adam.

Looking ahead to next week, investors will be waiting for key inflation reports, including the Producer Price Index on Tuesday, followed by the Consumer Price Index on Wednesday.

Wall Street analysts say they expect modestly stronger consumer inflation, but not hot enough to derail prospects for the Fed to cut rates next month.

“We expect headline CPI to rise by 0.3% m/m in July, mainly due to a rise in inflation in core services and energy prices. This would leave the year-on-year interest rate unchanged at 3.0%. Meanwhile, we expect the core CPI to rise by 0.2. % m/m,” Bank of America analysts wrote on Friday, adding that if the numbers come in line with their forecasts, markets will start pricing in fewer rate cuts.

Here’s where the US indexes stood at 4pm on Friday:

Here’s what else happened today:

The story continues

In commodities, bonds and crypto:

• West Texas average crude rose 1.04% to $76.98 a barrel. Brent crude oilthe international benchmark, rose 0.71% to $79.72 per barrel.

• Gold rose 0.20% to $2,468.30 an ounce.

• The yield on ten-year government bonds fell by 5 basis points to 3.94%.

• Bitcoin fell 1.96% to $60,499.

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