Dow jumps 200 points as Wall Street heads for 3-week low

Dow jumps 200 points as Wall Street heads for 3-week low

U.S. stocks rose on Friday following a tough trading session as traders focused on Federal Reserve Chairman Jerome Powell’s latest comments on inflation.

The Dow Jones Industrial Average gained 291 points, or 0.92%. The S&P 500 and Nasdaq Composite rose 1.23% and 1.76%, respectively.

Shares of DocuSign rose more than 17% in extended trading after the e-contracts company reported earnings. The company also issued a third-quarter earnings forecast that was above expectations.

The Dow Jones Industrial Average jumped 193 points, or 0.61%, during Thursday’s regular session – closing higher after alternating between gains and losses throughout the day. The S&P 500 rose 0.66%, and the Nasdaq Composite rose 0.60%.

The win puts all three on pace to snap a three-week losing streak. Through Thursday, the Dow is up 1.45%. Meanwhile, the S&P 500 is up 2.09%, and the Nasdaq Composite is up 1.99%.

Stocks have been volatile recently as expectations of a 0.75 percent rate hike this month grew on Wall Street, after the Fed chairman reiterated that he is “very committed” to bringing down inflation.

“The case for a continuing bear market is that the Fed will continue to tighten monetary policy, draining liquidity from the market and causing an imbalance,” said David Donabedian, chief investment officer of CIBC Private Wealth US. “But this week’s market recovery has shown that there is continued resilience in the economy underpinned by positive economic reports.”

Still, Donabedian added that he doesn’t think stocks have bottomed out in a bear market.

“Of course, the journey to the next bull market will take time, and there will be a series of pullbacks and recoveries,” he said.