Market Recap: Stocks Start Fourth Quarter Strong
After slipping for two weeks, equities opened the fourth quarter with the best week over week rally since July.
The Dow closed above the 12-month high at 9,864 as it jumped 4% since last Friday. Shares in the S&P easily wiped away late September losses, closing at 1,071, 4.5% on the week, and similar moves pushed the NASDAQ to 2,139, up 4.50% for the week.
The advances occurred despite that the week was relatively light on fresh data. Some economists believe hard data to be released next week, namely retail sales and industrial production, may be a reality check to investors.
“Those expecting a V-shaped recovery in the developed word have neither history nor economic logic on their side,” said analysts from Nomura Global Economics in a weekly note Friday.
“There is now a significant body of evidence to suggest that economies do not generally ‘snap back’ from recessions associated with severe financial crises, but rather struggle with the aftermath for a long time,” they added.
Gross domestic product is expected to have climbed more than 3.5% in the third quarter, but a large factor allowing businesses to earn profits has been firing workers â€
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