World

Wall Street ends higher after 7 weeks of losses

May 24, 2022 11:33 am

[Source: Associated Press News]

Stocks closed broadly higher Monday, an upbeat start to the week on Wall Street.

This is after seven weeks of declines that nearly ended the bull market that began in March 2020.

The S&P 500 rose 1.9%, with technology and financial sector stocks doing much of the heavy lifting for the benchmark index. The Dow Industrial Average rose 2% and the Nasdaq climbed 1.6%.

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The recent heavy selling on the market has primed traders to snap up big tech stocks and shares in other companies that had been high flyers before the market’s punishing skid, said Quincy Krosby, chief equity strategist for LPL Financial.

“What we’re seeing today is traders and investors coming in and taking advantage of the lower (price) levels,” she said.

“This is the tug-of-war in the market between those saying the market has become attractively valued, versus those who are saying ‘not really,’ because it’s not factoring in much slower growth.”

The S&P 500 gained 72.39 points to 3,973.75. The Dow added 618.34 points to 31,880.24, and the tech-heavy Nasdaq picked up 180.66 points to 11,535.27.

Smaller company stocks also staged a rally. The Russell 2000 rose 19.50 points, or 1.1%, to 1,792.76.

Lingering concerns about inflation have been weighing on the market and have kept major indexes in a slump.

The benchmark S&P 500 is coming off its longest weekly losing streak since the dot-com bubble was deflating in 2001.

It came close to falling 20% from its peak earlier this year, which would put the index at the heart of most workers’ 401(k) accounts into a bear market