Stocks end higher as investors recover most of their losses after a big disappointment

• US stocks rose on Friday, although they were slightly lower during the week.

• Investors managed to recoup most of the losses from Monday’s big sell-off.

• Investors are eyeing key inflation data next week, with the consumer price index due on Wednesday.

US stocks rose on Friday, but ended with a fourth straight weekly loss.

A spike in volatility on Monday led to whiplash trading for the stock market this week, as investors grappled with a resurgence in trade in the yen and worries about a potential economic slowdown.

The swings during the week — with the S&P 500 posting its worst day since 2022 on Monday and then its best day since Thursday — made the trading week the most volatile since 2024.

The rollercoaster ended Friday with stocks modestly higher after struggling to gain early in the session.

A weekly claims report on Thursday helped lift stocks to their biggest gain in nearly two years as sentiment around the economy and labor market improved after investors panicked on the jobs report since the last week of July.

“Market narratives can change quickly, but they are not always correct. This has happened many times in this cycle and will happen again. Don’t make investment decisions based on a single indicator or number,” said Raymond James CIO , Larry Adams.

Looking ahead to next week, investors will await key inflation reports, including the Producer Price Index on Tuesday, followed by the Consumer Price Index on Wednesday.

Wall Street analysts say they expect a modestly stronger consumer inflation reading, but not hot enough to derail prospects for the Fed to cut interest rates next month.

“We forecast that headline CPI rose 0.3% m/m in July, mainly due to a pick-up in core services inflation and energy prices. This would leave the annual rate unchanged at 3.0%. Meanwhile, we expect the core CPI to increase by 0.2. % m/l,” Bank of America analysts wrote on Friday, adding that if the data is in line with their forecasts, markets will start pricing in fewer interest rate cuts.

Here’s where US indices stood at the closing bell at 4pm on Friday:

Here’s what else happened today:

The story continues

In commodities, bonds and crypto:

• West Texas Intermediate crude rose 1.04 percent to $76.98 a barrel. Brent crude, the international benchmark, rose 0.71% to $79.72 a barrel.

• Gold was up 0.20% at $2,468.30 an ounce.

• The 10-year Treasury yield fell 5 basis points to 3.94%.

• Bitcoin fell 1.96% to $60,499.

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