Stocks rise, but Wall Street heads for a losing week: Live updates

Stocks rose on Friday, but Wall Street is headed for a losing week amid renewed worries that the Federal Reserve could raise rates more than expected.

The S&P 500 gained 0.2%, while the Nasdaq Composite jumped 0.3%. The Dow Jones Industrial Average edged up 91 points, or 0.25%.

Energy stocks rose as oil prices sprung up. The S&P 500 sector increased 1.3% and on pace for a 1.7% weekly gain. Major winners included Marathon Petroleum, Valero Energy and Phillips 66, last up 3% each.

Technology stocks that have struggled in recent sessions found their footing. After two straight losing days, Apple added more than 1%. Microsoft, Meta Platforms and Tesla rose more than 1% each. Block shares fell 5% as the payments company grappled with a systems outage.

Investors may be finding some comfort in the lack of bad news during Friday’s session following a string of stronger-than-expected economic data points earlier in the week, said Bryce Doty, a senior vice president and portfolio manager at Sit Investment Associates.

“When you think of the economy, it’s a Catch-22 for investors,” he said. “If it looks like we’re going to avoid the hard landing, we get some good economic news, and there’s a sigh of relief quickly followed up by an increased expectation of Fed rate increases.”

Even with Friday’s moves, stocks are still on pace for a down week. The Dow and S&P 500 have slumped 0.8% and 1.2%, respectively, while the Nasdaq’s lost 1.7%.

Recent economic data, including lower-than-expected initial jobless claims, have reignited rate hike fears and concerns that the Federal Reserve may have more work ahead. As of Friday morning, traders are pricing in a more than 41% chance of an increase in November after a likely pause in September, according to CME Group’s Fed Watch tool.

These factors, along with signs that companies are faring decently despite rising interest rates, are contributing to the current “tug-of-war” of choppiness in markets, said Yung-Yu Ma.

“Right now, we’re in that strange phase where good news can be bad news, but I don’t think that lasts too long,” said the chief investment strategist at BMO Wealth management, adding that softening consumer spending could flip that narrative. “We’re just not there yet.”

Elsewhere, investors pored over the latest batch of corporate earnings reports. E-signature stock DocuSign lost 2% even after the company topped second-quarter estimates and posted rosy third-quarter guidance. RH dropped more than 15% as on soft third-quarter guidance.