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U.S. Stock Indexes Post Weekly Gains Of More Than 2% -- WSJ

12 May 2018 6:32 am
By Akane Otani and Mike Bird 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (May 12, 2018).

Bets on inflation remaining muted helped push investors back into the stock market, driving the S&P 500 and Dow Jones Industrial Average to their biggest one-week gains since March.

Stocks have rebounded in recent sessions, with the Dow rising seven straight sessions through Friday -- its longest such streak since November.

Data on producer and consumer prices suggested inflationary pressures are still soft, reassuring investors that prices aren't rising at a pace that would force the Federal Reserve to accelerate its pace of interest-rate increases.

Meanwhile, oil prices rallied to lift shares of energy companies. And shares of technology companies that came under pressure earlier in the year extended their recovery, with names like Google parent Alphabet, Facebook and PayPal all up more than 4% apiece for the week.

To some analysts, the recent moves suggest the stock market could finally be regaining its footing following a wave of volatility that had pulled major indexes down more than 10% from their all-time highs.

"Investors have been so worried about inflation and higher rates, and it's just not happening," said Karyn Cavanaugh, senior market strategist at Voya Investment Management. "I'm looking for all of the miserable things I could think of, and most of it seems to have already been priced in."

The Dow industrials rose 91.64 points, or 0.4%, to 24831.17, advancing 2.3% for the week.

The S&P 500 added 4.65 points, or 0.2%, to 2727.72 and posted a 2.4% weekly gain, while the Nasdaq Composite edged down 2.09 points, or less than 0.1%, to 7402.88 for a 2.7% weekly advance.

Major indexes wobbled between small gains and losses Friday as shares of semiconductor firms came under pressure. Nvidia, which posted better-than-expected quarterly earnings Thursday, fell $5.60, or 2.2%, to $254.53, with some analysts attributing the decline to investors taking profits following a recent run-up in the stock.

Despite the day's moves, Nvidia jumped 6.5% for the week and remained up 32% for the year.

Meanwhile, Verizon Communications rose 1.42, or 3%, to 48.62, posting its third biggest one-day gain of the year, after JPMorgan Chase analysts upgraded their rating for the stock to "overweight" from "neutral."

Elsewhere, the Stoxx Europe 600 closed up 0.1%, boosted by gains in shares of basic-resources companies.

Japan's Nikkei Stock Average rose 1.2% and posted its seventh consecutive weekly advance -- its longest such streak since the week ended Nov. 10, 2017.

Hong Kong's Hang Seng Index rose 1% on the day, while Malaysian markets remained closed after a surprise opposition win in elections.

Write to Akane Otani at akane.otani@wsj.com and Mike Bird at Mike.Bird@wsj.com

(END) Dow Jones Newswires

May 12, 2018 02:32 ET (06:32 GMT)

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