Skip to content

Stocks Roar Back at End of Nerve-Racking Week: Markets Wrap

  • Powell reassures bigger hikes are off the table for now
  • Musk says Twitter deal is on hold, but he’s still committed
Video player cover image
Leuthold's Paulsen Says Correction Is a 'Dynamite' Buying OpportunitySource: Bloomberg
Updated on

Stocks rallied at the end of a chaotic week in financial markets, with a little help from Federal Reserve Chair Jerome Powell’s reassurance that bigger rate hikes would be off the table for now even after the hot inflation readings of the past few days.

For a market plagued by fears that more aggressive monetary tightening could tip the economy into a recession, Powell’s remarks ended up soothing frayed nerves and sparking a rebound in beaten-down risk assets. Despite the strong gains on Friday, many traders aren’t yet convinced that equities have reached a bottom after a selloff that shaved $10 trillion from US stock values in 18 weeks. Instead, they say investors should still brace for volatility as the Fed’s ability to fight price pressures without causing a hard landing may depend on factors outside the central bank’s control.