S&P 500 rebounds from Thursday’s loss, retakes 5,600 level and heads for winning week: Live updates

U.S. stocks bounced back on Friday after the S&P 500 had its worst session since April in the prior session.

The S&P 500 was higher by 0.9% and rose above the 5,600 level once again after falling below the threshold on Thursday. The Dow Jones Industrial average added 340 points, or 0.8%. The Nasdaq Composite was up 1.1%.

During Thursday’s session, the broad market index closed 0.88% lower, and the tech-heavy Nasdaq Composite lost 1.95%. Both indexes broke seven-day winning streaks and they suffered their worst day since April 30. Investors sold their Big Tech winners in a major market rotation, pushing Nvidia lower by 5.6% and leading to a 4.1% decline for Meta Platforms. The 30-stock Dow was the outperformer among the three major averages, inching higher by 0.08%.

Nvidia bounced 2% on Friday as investors picked up some of their favorite tech names once again. Apple was also higher.

Banks kicked off second-quarter earnings reporting season Friday and the mostly stronger-than-expected results failed to spur further buying. JPMorgan shares were 1% lower even as the bank posted second-quarter revenue higher than Wall Street expectations on a jump in investment banking fees. Citi stock dipped 3% despite beating on the top and bottom line in the second quarter.

Wells Fargo shares tumbled 7% after the bank said net interest income, a key measure of lending profitability for banks, fell short of expectations in the second quarter.

A reading of wholesale inflation came in slightly hotter than expected on Friday, but Wall Street largely ignored those figures after a drop in the consumer price index a day earlier spurred optimism the Federal Reserve would cut rates in September.

“We are still optimistic about the economy and the market given the favorable price dynamics (largely slowing) and strong labor market, but if either of those trends change it will disproportionately affect markets because valuations have become stretched,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.

On a weekly basis, the S&P 500 is up 0.9%, notching another record close on Wednesday. The Nasdaq is up 0.41% for the week. The Dow is up 1.3% on the week as investors jumped into industrial names and out of tech stocks. The Russell 2000 Index is up more than 6% for the week after a 1.5% gain on Friday as hopes increased for a soft landing for the broader economy, which would give a boost to smaller stocks.