- US stocks recovered some of this week's losses as a tech rally boosted risk sentiment and comments from Federal Reserve officials eased concerns about overly aggressive policy moves.
- The S&P 500 index rose for the first time in four days, with gains in all 11 sectors. While the broad index was down for the week, the tech-heavy Nasdaq 100 recovered and closed in the green for the week. Alphabet gained after announcing a plan to cut 12,000 jobs. Netflix rose after reporting higher-than-expected subscriber growth.
- Benchmarks rose to session highs on Friday after Fed Governor Christopher Waller stated that policy appears to be sufficiently restrictive and that he supports moderation in the size of rate increases. Earlier, Philadelphia Fed President Patrick Harker reiterated his preference for more gradual rate hikes, while Kansas City Fed President Esther George stated that the economy can avoid a sharp downturn.
- Despite a rise in treasury yields, equity markets rallied, implying that the 60/40 portfolio model may be making a comeback. Higher rates and hawkish comments from Fed and European Central Bank officials earlier this week weighed on risk sentiment.
- Earnings have also been in focus. So far, roughly two-thirds of the 55 S&P 500 companies that have reported results have beaten analysts' estimates, compared to the 80% positive surprise seen in previous quarters.
- Oil rose to its highest level since mid-November, capping off a second week of gains on increased demand from China. West Texas intermediate rose 1.8% week on week to settle above $81 per barrel.
