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STOCKS RALLY TO CLOSE OUT A VOLATILE WEEK
Dow, S&P 500 and Nasdaq finish higher as oil eases and Wall Street prepares for earnings season
WALL STREET REBOUNDS:
U.S. stocks rallied Friday as easing oil prices and a recovery in technology shares helped the major averages finish the week in positive territory.
The Dow Jones Industrial Average gained 0.8%, while the S&P 500 and Nasdaq Composite each advanced 0.6%. All three major indexes posted weekly gains, capping a turbulent stretch for investors as concerns over energy prices, inflation and artificial intelligence continued to influence market sentiment. EARNINGS SEASON TAKES CENTER STAGE: Delta Air Lines finished Friday little changed after reporting third-quarter earnings that fell short of expectations. Higher fuel costs weighed on results, offsetting strength in the airline’s premium business. Wall Street now turns its attention to the unofficial start of earnings season next Tuesday, when major U.S. banks begin reporting results. Investors will be watching closely for clues about corporate profitability, consumer spending and the health of the broader economy.
AI FEARS MEET A REBOUND:
Technology stocks recovered Friday after renewed questions about artificial intelligence spending and OpenAI’s revenue outlook rattled markets a day earlier. Conflicting reports about OpenAI’s revenue trajectory helped ease some concerns that the AI growth story could be losing momentum. For investors, the bigger question remains whether the massive investments pouring into AI will continue translating into sustainable revenue growth and corporate profits.
OIL AND INFLATION REMAIN IN FOCUS:
Brent crude hovered near $104 per barrel as oil prices retreated Friday following reports of potential additional diesel supplies reaching global markets. Even with the pullback, elevated energy prices continue to pressure household budgets and complicate the inflation outlook. The latest University of Michigan consumer sentiment survey showed confidence falling to a five-month low, underscoring the strain Americans face from higher gasoline prices and the broader cost of living.
GP’S TAKE
The market finished the week on a positive note, but investors aren’t out of the woods yet. Oil prices, inflation, AI valuations and corporate earnings remain key forces that could determine the market’s next move. Next week, earnings take the driver’s seat. Watch how the major banks report, how the market reacts, and whether the major indexes can build on Friday’s recovery.
Remember, MFG : A rally is encouraging, but price action is what matters. Stay disciplined, manage your risk, and let the market show you where the money is flowing .
True Wealth = Freedom.
— GP | @fullauto11
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