U.S. stocks rose Friday, with technology shares modestly higher and broader markets gaining.
The Dow Jones Industrial Average rose 199.37 points, or 0.59%, to close at 33,547.37. The S&P 500 rose 18.78 points, or 0.48%, to close at 3,965.34, and the Nasdaq Composite rose 1.10 points, or 0.01%, to close at 11,146.06.
Two reports showing the rate of inflation slowing helped fuel a stock surge earlier in the week. But the rally ended Thursday after Federal Reserve officials signaled more rate increases were likely in 2023 to stifle inflation.
St. Louis Federal Reserve President James Bullard said in a speech Thursday that “the policy rate is not yet in a zone that may be considered sufficiently restrictive.”
The Federal Reserve has increased interest rates an unprecedented seven times this year. More increases in 2023 are likely, officials said, even if that means helping to push the economy into recession.
Some of the other stocks that rose Thursday included Meta Platforms (META), which closed at $112.05, up $0.60, or 0.59%. Apple‘s (AAPL) price of shares rose $0.57, or 0.38%, to close at $151.29.
“There is nothing that guarantees that inflation is behind us,” Peter Boockvar, chief investment officer at Bleakley Financial Group told The Wall Street Journal. “Where it settles out is really what’s most important here. Do we go back to its pre-Covid trend of 1 to 2% or settle out at 3 to 4%?”