By Yasin Ebrahim
Investing.com — The Dow Jones closed higher on Friday as stocks posted their best week since June, led by energy and technology stocks amid bets for a less hawkish Federal Reserve following data earlier this week showing a drop in inflation.
The gains 0.10%, or 32 points, bringing its weekly gain to 4%. The increased by 1.9% and the increased by 0.88%.
Energy stocks rose more than 3%, buoyed by rising oil prices as China eased some of its Covid-19 restrictions, stoking hopes of rising demand.
Occidental Petroleum Corporation (NYSE:), Phillips 66 (NYSE:), and Devon Energy Corporation (NYSE:) led the sector higher, up more than 4%.
Tech continued to rack up gains for a second straight day as optimism that inflation has peaked encouraged fresh bets on less hawkish Fed rate hikes.
Alphabet (NASDAQ:) rose more than 2% to lead big tech higher, while Apple Inc (NASDAQ:), Microsoft Corporation (NASDAQ:) and Meta Platforms (NASDAQ:) rose more than 1%. %.
But some continued to caution against investing in technology and stressed the need to take a selective approach, prioritizing companies that have strong fundamentals and are able to pass higher costs onto consumers.
“Companies that are growing cash flow that haven’t been hit as hard by inflation are going to perform better than those that were the darlings of the just-increasing 2021 period,” said Jim Worden, chief financial officer. Wealth Consulting Group investments. Yasin Ebrahim of com in an interview on Friday.
Consumer stocks were also on the rise with casino and travel stocks bidding on news of the easing of Covid-19 restrictions in China, while retail stocks were led higher by Ralph Lauren.
Ralph Lauren (NYSE:) rose more than 9% after the branded clothing maker reported a better-than-expected fiscal year, driven by a “strong” performance in North America, Wedbush said after raising its target for priced from $95 to $100, citing “greater confidence around executive execution during tough times.”
Amazon (NASDAQ:) has also played a big role in promoting consumer stocks amid reports that the e-commerce giant is considering cost-cutting measures that could include eliminating unprofitable divisions.
Healthcare, however, held back the broader market from further progress as investors appeared to exit defensive corners of the market. Cigna (NYSE:), Humana inc. (NYSE:) and Elevance Health Inc (NYSE:) were the worst performers, down more than 5%.
In cryptocurrency-related news, crypto exchange FTX has announced that it is filing for bankruptcy and its chief executive Sam Bankman-Fried has resigned. fell 8% and fell more than 6%