By Liz Moyer
Investing.com -- U.S. stocks surged into the close on Friday breaking a three-week losing streak led by tech.
It is the first positive week for stocks since the beginning of June. Investors have been concerned about a recession ahead as several Wall Street economists raised the odds of one happening sometime in the next 12 months. With the housing market showing signs of cooling, new home sales data for May was unexpectedly strong, rising an annualized 696,000.
But Michigan consumer sentiment , the final reading for the month, was a tepid 50, slightly lower than the 50.2 expected and the lowest since the late 1970s.
But Friday's rally showed investors determined to end the week on a high note after putting fears about aggressive rate hikes by the Federal Reserve on the back burner. The Fed raised its benchmark rate by three-quarters of a percentage point earlier this month and was on track for another half-point to three-quarter point increase at its July meeting. Fed Chair Jerome Powell acknowledged in congressional testimony this week that recession was a risk, but he also said the economy was strong enough to withstand successive rate increases.
FedEx Corporation (NYSE: FDX ) shares jumped 6% after earnings beat estimates on higher rates and fuel surcharges, which overcame declining shipping volume. The logistics giant released an optimistic forecast for fiscal 2023.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.