Stocks rose on Friday as the momentum behind this week’s selloff eased, though the fears that drove recent declines—including inflation and recession risk—remained.
Futures for the Dow Jones Industrial Average rose 210 points, or 0.7%, after the index lost 103 points Thursday to close at 31,730. S&P 500 futures signaled a start 1% into the green with the technology-heavy Nasdaq poised to move 1.6% higher.
A selloff in stocks accelerated in the past week, with the Dow notching its worst six-day stretch in more than two years as of Thursday. While the declines look to have decelerated, the pressures that have driven stocks lower remain. Investors continue to fear that the Federal Reserve won’t be able to avoid causing a recession as it tightens monetary conditions this year to fight inflation at a four-decade high.
“While we continue to see positives for the market, investor sentiment isn’t likely to turn until we get greater clarity on the 3Rs—rates, recession, and risk,” said Mark Haefele, the chief investment officer at UBS Global Wealth Management.
A rally was also seen in the cryptocurrency space, where Bitcoin and other digital assets surged after the largest crypto briefly dropped to its lowest level since late 2020. The price of Bitcoin was up 10% over the past 24 hours and above the key $30,000 level.
Here’s one stock on the move Friday:
Robinhood Markets (ticker: HOOD) shot up 20% in U.S. premarket trading, after a filing revealed that Sam Bankman-Fried, co-founder of crypto exchange FTX and an influential voice in digital assets, bought a large stake in the retail-stock brokerage.
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