The Dow Jones Industrial Average topped the 40,000 level for the first time Thursday, as U.S. stocks drifted higher to add to their records set a day before.

The Dow was up 106 points, or 0.3%, at 40,014, in midday trading. It made its last leap of 10,000 points in about three and a half years, as the U.S. economy and corporate profits crawled out of the crash caused COVID-19. They’ve continued to hold up so far despite the worst inflation in decades, the punishing effects of high interest rates and worries about a recession that seemed inevitable but hasn’t arrived.

The S&amp;P 500 index, which is much more widely followed on Wall Street and dictates the performance of many more 401(k) accounts than the Dow, was 0.2% higher, as of 11:40 a.m. Eastern time. The Nasdaq composite was up 0.2%. They also had rallied on Wednesday to all-time highs.

Walmart was one of the strongest forces lifting the market, and it rose 6% after reporting stronger profit for the latest quarter than analysts expected. It also said its revenue for the year could top the forecasted range it had earlier given.

Walmart’s strength could be an encouraging signal for the broader economy. Worries have been rising about whether U.S. households can keep up with still-high inflation, even if it’s not as bad as before, and more expensive credit-card payments, particularly those making lower incomes.

Target, which reports its quarterly results next week, climbed following Walmart’s report, along with other retailers like Dollar General and Dollar Tree. Each added at least 2.4%.

Chubb climbed 3.8% after Warren Buffett’s Berkshire Hathaway disclosed it had built an ownership stake in the insurer.

Stronger-than-expected profit reports have been one of the main reasons U.S. stock indexes jumped through May to records following a tough April. Another has been revived hopes that the Federal Reserve will be able to cut its main interest rate at least once or twice this year. The Fed has been keeping its federal funds rate at the highest level in more than two decades.

A string of worse-than-expected reports on inflation at the start of the year had put the potential for such cuts in jeopardy, but some more encouraging data has since arrived.

Treasury yields have eased in May as hopes rose that the economy could hit the hoped-for sweet spot, where it cools enough because of high interest rates to stifle inflation but not so much that it causes a bad recession. Yields were holding edging higher Thursday following some mixed data on the economy.

One report showed slightly more workers applied for unemployment benefits last week than economists expected, though the number remains low compared with history. Others said homebuilders broke ground on fewer projects last month than expected, manufacturing growth in the mid-Atlantic region was weaker than hoped and import prices rose more than forecast.

“Today’s numbers were in line with the overall theme of the week — nothing dramatic, but showing signs of a steady-to-cooling economy,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

The yield on the 10-year Treasury ticked up to 4.36% from 4.35% late Wednesday. The two-year yield, which moves more closely with expectations for action by the Fed, rose to 4.77% from 4.72%.

On the losing end of Wall Street, Deere fell 3.2% despite reporting stronger profit for its latest quarter than expected. It cut its forecast for profit over the full fiscal year below analysts’ estimates, as farmers buy fewer tractors and other equipment.

Homebuilders fell following the weaker-than-expected report on housing starts. They gave back some of their big gains the day before, when hopes for lower mortgage rates had sent them sharply higher. Lennar fell 2.1%, and D.R. Horton slipped 2%.

GameStop and AMC Entertainment slid for a second straight day, pulling back further from their jaw-dropping starts to the week. They’ve been moving more on excitement drummed up by investors than any changes to their financial prospects.

GameStop fell 25.2%, though it’s still up nearly 69% for the week so far. AMC Entertainment lost 13.9%.

Under Armour swung from an early loss to a slight gain after it warned that its revenue will be likely down by “a low double-digit percentage rate” this upcoming fiscal year, citing weaker demand from wholesalers and “inconsistent execution across our business.” The company announced a restructuring plan to cut costs and also announced a program to buy back up to $500 million of its stock. It was up 1.1%.

In stock markets abroad, indexes were modestly lower in much of Europe after mostly rising in Asia. Hong Kong’s Hang Seng jumped 1.6% after reopening following a holiday, while Japan’s Nikkei 225 rose 1.4%.

The Dow Jones Industrial Average topped the 40,000 level for the first time Thursday, as U.S. stocks drifted higher to add to their records set a day before. The Dow was up 106 points, or 0.

The Dow Jones Industrial Average topped the 40,000 level for the first time Thursday, as U.S. stocks drifted higher to add to their records set a day before. The Dow was up 106 points, or 0.3%, at 40,014, in midday trading. It made its last leap of 10,000 points in about three and a half years, as the U.S. economy and corporate profits crawled out of the crash caused COVID-19. They’ve continued to hold up so far despite the worst inflation in decades, the punishing effects of high interest rates and worries about a recession that seemed inevitable but hasn’t arrived. The S&P 500 index, which is much more widely followed on Wall Street and dictates the performance of many more 401(k) accounts than the Dow, was 0.2% higher, as of 11:40 a.m. Eastern time. The Nasdaq composite was up 0.2%. They also had rallied on Wednesday to all-time highs. Walmart was one of the strongest forces lifting the market, and it rose 6% after reporting stronger profit for the latest quarter than analysts expected. It also said its revenue for the year could top the forecasted range it had earlier given. Walmart’s strength could be an encouraging signal for the broader economy. Worries have been rising about whether U.S. households can keep up with still-high inflation, even if it’s not as bad as before, and more expensive credit-card payments, particularly those making lower incomes. Target, which reports its quarterly results next week, climbed following Walmart’s report, along with other retailers like Dollar General and Dollar Tree. Each added at least 2.4%. Chubb climbed 3.8% after Warren Buffett’s Berkshire Hathaway disclosed it had built an ownership stake in the insurer. Stronger-than-expected profit reports have been one of the main reasons U.S. stock indexes jumped through May to records following a tough April. Another has been revived hopes that the Federal Reserve will be able to cut its main interest rate at least once or twice this year. The Fed has been keeping its federal funds rate at the highest level in more than two decades. A string of worse-than-expected reports on inflation at the start of the year had put the potential for such cuts in jeopardy, but some more encouraging data has since arrived. Treasury yields have eased in May as hopes rose that the economy could hit the hoped-for sweet spot, where it cools enough because of high interest rates to stifle inflation but not so much that it causes a bad recession. Yields were holding edging higher Thursday following some mixed data on the economy. One report showed slightly more workers applied for unemployment benefits last week than economists expected, though the number remains low compared with history. Others said homebuilders broke ground on fewer projects last month than expected, manufacturing growth in the mid-Atlantic region was weaker than hoped and import prices rose more than forecast. “Today’s numbers were in line with the overall theme of the week — nothing dramatic, but showing signs of a steady-to-cooling economy,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. The yield on the 10-year Treasury ticked up to 4.36% from 4.35% late Wednesday. The two-year yield, which moves more closely with expectations for action by the Fed, rose to 4.77% from 4.72%. On the losing end of Wall Street, Deere fell 3.2% despite reporting stronger profit for its latest quarter than expected. It cut its forecast for profit over the full fiscal year below analysts’ estimates, as farmers buy fewer tractors and other equipment. Homebuilders fell following the weaker-than-expected report on housing starts. They gave back some of their big gains the day before, when hopes for lower mortgage rates had sent them sharply higher. Lennar fell 2.1%, and D.R. Horton slipped 2%. GameStop and AMC Entertainment slid for a second straight day, pulling back further from their jaw-dropping starts to the week. They’ve been moving more on excitement drummed up by investors than any changes to their financial prospects. GameStop fell 25.2%, though it’s still up nearly 69% for the week so far. AMC Entertainment lost 13.9%. Under Armour swung from an early loss to a slight gain after it warned that its revenue will be likely down by “a low double-digit percentage rate” this upcoming fiscal year, citing weaker demand from wholesalers and “inconsistent execution across our business.” The company announced a restructuring plan to cut costs and also announced a program to buy back up to $500 million of its stock. It was up 1.1%. In stock markets abroad, indexes were modestly lower in much of Europe after mostly rising in Asia. Hong Kong’s Hang Seng jumped 1.6% after reopening following a holiday, while Japan’s Nikkei 225 rose 1.4%.

Stock market today: Dow tops 40,000 for the first time as Wall Street drifts higher

Dow Jones Industrial Average achieved an unprecedented milestone, closing above the 38,000 mark for the first time in history on Monday (Jan 22). Accompanying this surge, the S&amp;P 500 also notched a new record, closing at approximately 4,850, while the Nasdaq saw an uptick, reaching 15,360 at the close of Monday's trading session.

The early days of the year witnessed a sluggish performance across major stock indexes. However, a notable reversal occurred in the middle of last week, propelling the market to its current heights.

Investors have been buoyed by the anticipation of inflation reverting to normal levels without succumbing to a recession. Adding to the momentum, investor enthusiasm for artificial intelligence (AI) has played a significant role in driving returns in the market.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/ftc-prohibits-turbotax-maker-intuit-from-advertising-free-services-682776">FTC prohibits TurboTax maker Intuit from advertising 'free' services</a>

Moreover, the recovery may also be attributed, in part, to expectations among certain investors of potential interest rate cuts by the Federal Reserve&nbsp;as early as March.

Federal Reserve Governor Christopher Waller indicated early last week that the central bank anticipates rate cuts in the coming year but also called for a cautious approach, stating that decisions won't be made in a hurry.

Waller's comments initially caused treasury yields to surge and major stock indexes to decline.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/bitcoin-plummets-to-40000-hits-lowest-point-since-etf-debut-682753">Bitcoin plummets to $40,000, hits lowest point since ETF debut</a>

Since then, however, the stock market has shown resilience and climbed steadily.&nbsp;

If implemented, these cuts could reduce borrowing costs for both consumers and businesses, potentially stimulating economic activity through increased household spending and corporate investment.

<section>
Watch |&nbsp;<a href="https://www.wionews.com/videos/brazils-re-industrialisation-plan-682714">Brazil's 're-industrialisation' plan</a>

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However, the Federal Reserve faces a delicate balancing act.
</section>

This is because a swift interest rate cut could risk triggering a rebound in inflation. The concern is that heightened consumer demand might lead to an acceleration of price increases.

(With inputs from agencies)

Dow Jones Industrial Average achieved an unprecedented milestone, closing above the 38,000 mark for the first time in history on Monday (Jan 22). Accompanying this surge, the S&P 500 also notched a new record, closing at approximately 4,850, while the Nasdaq saw an uptick, reaching 15,360 at the close of Monday's trading session.

Dow Jones Industrial Average achieved an unprecedented milestone, closing above the 38,000 mark for the first time in history on Monday (Jan 22). Accompanying this surge, the S&P 500 also notched a new record, closing at approximately 4,850, while the Nasdaq saw an uptick, reaching 15,360 at the close of Monday's trading session. The early days of the year witnessed a sluggish performance across major stock indexes. However, a notable reversal occurred in the middle of last week, propelling the market to its current heights. Investors have been buoyed by the anticipation of inflation reverting to normal levels without succumbing to a recession. Adding to the momentum, investor enthusiasm for artificial intelligence (AI) has played a significant role in driving returns in the market. Also Read | FTC prohibits TurboTax maker Intuit from advertising 'free' services Moreover, the recovery may also be attributed, in part, to expectations among certain investors of potential interest rate cuts by the Federal Reserve as early as March. Federal Reserve Governor Christopher Waller indicated early last week that the central bank anticipates rate cuts in the coming year but also called for a cautious approach, stating that decisions won't be made in a hurry. Waller's comments initially caused treasury yields to surge and major stock indexes to decline. Also Read | Bitcoin plummets to $40,000, hits lowest point since ETF debut Since then, however, the stock market has shown resilience and climbed steadily. If implemented, these cuts could reduce borrowing costs for both consumers and businesses, potentially stimulating economic activity through increased household spending and corporate investment. Watch | Brazil's 're-industrialisation' plan × However, the Federal Reserve faces a delicate balancing act. This is because a swift interest rate cut could risk triggering a rebound in inflation. The concern is that heightened consumer demand might lead to an acceleration of price increases. (With inputs from agencies)

Dow Jones closes above 38,000, a record high as market registers recovery

In the aftermath of the global stock markets bloodbath, world's 500 richest people lost $444 billion in total this week, Bloomberg Billionaires Index said on Saturday.

The US stock market suffered a historic pullback after the Dow Jones Industrial Average and S&amp;P 500 each tumbled over 12 per cent and 11% this week over the coronavirus pandemic and wiped out more than $6 trillion from global stocks. It was the biggest five-day slide since the depths of the 2008 financial crisis.

Also read:<a href="https://www.wionews.com/business-economy/sensex-nifty-crash-as-global-markets-dive-over-spread-of-coronavirus-283314"> Sensex, Nifty crash as global markets dive over spread of coronavirus</a>

According to the report, the world’s three richest people, Amazon founder Jeff Bezos, Microsoft Corporation's Bill Gates and LVMH Chairman Bernard Arnault suffered the biggest losses, as their combined wealth dropped about $30 billion.

Founder of SpaceX and CEO of Tesla, Elon Musk, lost $9 billion as shares of Tesla recorded a major dip. &nbsp;

Also Read:<a href="https://www.wionews.com/business-economy/carnage-on-dalal-street-stock-market-crash-wipes-off-rs-5-lakh-cr-investor-wealth-283262"> Carnage on Dalal Street - Stock market crash wipes off Rs 5 lakh cr investor wealth</a>

The virus which originated from Wuhan in Hubei province in China has already claimed 2,856 people and infected more than 83,000 worldwide and spread to at least 45 countries.&nbsp;

However, Iran has emerged as a new hotspot for the virus, with at least 43 deaths and more than 245 infections so far.

Meanwhile, oil prices sank to a new low of $50.05 per barrel as the virus sparked panic over crude demand.

European stock markets bled with Frankfurt's DAX 30 index diving 5.2 per cent. 
&nbsp;

In the aftermath of the global stock markets bloodbath, world's 500 richest people lost $444 billion in total this week, Bloomberg Billionaires Index said on Saturday.

In the aftermath of the global stock markets bloodbath, world's 500 richest people lost $444 billion in total this week, Bloomberg Billionaires Index said on Saturday. The US stock market suffered a historic pullback after the Dow Jones Industrial Average and S&P 500 each tumbled over 12 per cent and 11% this week over the coronavirus pandemic and wiped out more than $6 trillion from global stocks. It was the biggest five-day slide since the depths of the 2008 financial crisis. Also read: Sensex, Nifty crash as global markets dive over spread of coronavirus According to the report, the world’s three richest people, Amazon founder Jeff Bezos, Microsoft Corporation's Bill Gates and LVMH Chairman Bernard Arnault suffered the biggest losses, as their combined wealth dropped about $30 billion. Founder of SpaceX and CEO of Tesla, Elon Musk, lost $9 billion as shares of Tesla recorded a major dip. Also Read: Carnage on Dalal Street - Stock market crash wipes off Rs 5 lakh cr investor wealth The virus which originated from Wuhan in Hubei province in China has already claimed 2,856 people and infected more than 83,000 worldwide and spread to at least 45 countries. However, Iran has emerged as a new hotspot for the virus, with at least 43 deaths and more than 245 infections so far. Meanwhile, oil prices sank to a new low of $50.05 per barrel as the virus sparked panic over crude demand. European stock markets bled with Frankfurt's DAX 30 index diving 5.2 per cent.

World's richest including Jeff Bezos and Bill Gates lose $444 billion in a week after global markets bleed

Wall Street stocks plunged Monday, with losses on Nasdaq exceeding three per cent, after <a href="https://www.wionews.com/world/now-china-imposes-tariffs-on-60-billion-worth-of-us-goods-218421">China announced it was ramping up tariffs on US goods</a>, escalating the year-long trade dispute.

About an hour into the trading session, the Dow Jones Industrial Average was down nearly 530 points, or 2.0 per cent, at 25,412.74.

The broad-based S&amp;P 500 dropped 2.1 per cent to 2,821.61, while the tech-rich Nasdaq Composite Index tumbled 2.7 per cent to 7,7022.21.

Beijing announced Monday said it will increase tariffs on $60 billion worth of US goods from June 1, striking back after Washington more than doubled tariffs on $250 billion in Chinese goods, and also started the process to impose punitive duties on the nearly all Chinese imports.

The editor of the party-owned Chinese newspaper Global Times said on Twitter that Beijing was considering additional actions, including dumping US Treasuries, ending US agricultural purchases and reducing orders for Boeing aeroplanes.

Boeing fell 3.4 per cent. A spokesman for the company said Boeing was "confident the US and China will continue trade discussions and come to an agreement than benefits both US and Chinese manufacturers and consumers."

Other US companies with large China operations suffered big declines, including Apple, down 5.3 per cent, Caterpillar, down 4.3 per cent, Deere &amp; Company, down 5.2 per cent, General Motors, down 3.2 per cent and Starbucks, down 2.2 per cent.

Apple also was hit by news the US Supreme Court will allow an antitrust lawsuit against the iPhone maker to go forward.

The broader market retreat indicated growing concern that talks between the United States and China could fall apart.&nbsp;

US stocks posted a modest recovery on Friday following the conclusion of trade talks after both sides vowed to keep talking, even as they failed to strike a deal after months of back-and-forth, and the US tariff increase took effect.

Among other companies, Uber Technologies shed 8.0 per cent in its second trading session after faltering Friday in a market debut and closing below its initial public offering price.&nbsp;

Wall Street stocks plunged Monday, with losses on Nasdaq exceeding three per cent, after China announced it was ramping up tariffs on US goods, escalating the year-long trade dispute.

Wall Street stocks plunged Monday, with losses on Nasdaq exceeding three per cent, after China announced it was ramping up tariffs on US goods, escalating the year-long trade dispute. About an hour into the trading session, the Dow Jones Industrial Average was down nearly 530 points, or 2.0 per cent, at 25,412.74. The broad-based S&P 500 dropped 2.1 per cent to 2,821.61, while the tech-rich Nasdaq Composite Index tumbled 2.7 per cent to 7,7022.21. Beijing announced Monday said it will increase tariffs on $60 billion worth of US goods from June 1, striking back after Washington more than doubled tariffs on $250 billion in Chinese goods, and also started the process to impose punitive duties on the nearly all Chinese imports. The editor of the party-owned Chinese newspaper Global Times said on Twitter that Beijing was considering additional actions, including dumping US Treasuries, ending US agricultural purchases and reducing orders for Boeing aeroplanes. Boeing fell 3.4 per cent. A spokesman for the company said Boeing was "confident the US and China will continue trade discussions and come to an agreement than benefits both US and Chinese manufacturers and consumers." Other US companies with large China operations suffered big declines, including Apple, down 5.3 per cent, Caterpillar, down 4.3 per cent, Deere & Company, down 5.2 per cent, General Motors, down 3.2 per cent and Starbucks, down 2.2 per cent. Apple also was hit by news the US Supreme Court will allow an antitrust lawsuit against the iPhone maker to go forward. The broader market retreat indicated growing concern that talks between the United States and China could fall apart. US stocks posted a modest recovery on Friday following the conclusion of trade talks after both sides vowed to keep talking, even as they failed to strike a deal after months of back-and-forth, and the US tariff increase took effect. Among other companies, Uber Technologies shed 8.0 per cent in its second trading session after faltering Friday in a market debut and closing below its initial public offering price.

US stocks plunge on China trade retaliation

US&nbsp;stocks ended a wild week with a burst of buying, pushing the S&amp;P 500 up 1.5 per cent on Friday, but still recorded their worst week in two years, and investors braced for more volatile trading days ahead.

The sharp falls of the week confirmed the market was in a correction, down more than 10 per cent from a January 26 record high, and throwing the nearly nine-year bull market off course. The newly volatile market was shaken in part by rising bond yields, which led stock investors to rethink their positions after months of steady gains.

The S&amp;P 500 ended the week nearly 9 per cent below the all-time high set just two weeks ago.

&ldquo;I don&#39;t see any reason to think that we&#39;re setting a pattern for next week or the rest of the year,&quot; said Rob Stein, the chief executive officer of Astor Investment Management in Chicago. &quot;The only pattern we&#39;re setting is more volatility.&quot;

On Friday alone, the S&amp;P 500 swung from gains of up to 2.2 per cent to declines of 1.9 per cent, echoing the big swings of the past week. The Dow moved in a range of more than 1,000 points, a more modest change than on Monday when the Dow fell as much as nearly 1,600 points.

The Dow Jones Industrial Average rose 330.44 points, or 1.38 per cent, to 24,190.9, the S&amp;P 500 gained 38.55 points, or 1.49 per cent, to 2,619.55, and the Nasdaq Composite added 97.33 points, or 1.44 per cent, to 6,874.49.

&nbsp;

Technology was the best-performing group on Friday, with Microsoft Corp, Alphabet Inc and Facebook Inc giving the biggest individual boosts to the S&amp;P 500. The energy was the lone major S&amp;P sector to end negative as oil prices tumbled.

The benchmark S&amp;P 500 fell 5.2 per cent for the week, its biggest weekly percentage drop since January 2016. For the week, the sector that got hammered the most was energy.

Ninety-six S&amp;P 500 stocks are down 20 per cent or more from their own one-year highs, according to Thomson Reuters data.

The sharp selloff in recent days was kicked off by concerns over rising inflation and bond yields, sparked by last week&#39;s January US&nbsp;jobs report.

&quot;You have a fundamental difference between the economy and earnings doing well, versus interest rates going up and inflation picking up, and it&rsquo;s still a question of which will dominate,&quot; said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois.

Equities for years have looked relatively attractive compared to the low yields offered by bonds, but the rise in Treasury yields has diminished the allure of stocks, especially with stock valuations at historically expensive levels.

The yield on benchmark 10-year US&nbsp;Treasuries hovered around 2.85 per cent after touching a four-year peak of 2.885 per cent on Monday.

&ldquo;That&rsquo;s part of this recalculation that has gone on in the market: How do we factor in higher bond yields?&quot; said Willie Delwiche, investment strategist at Baird in Milwaukee. &quot;And that is a process that is playing out.&quot;

US&nbsp;fund investors sucked $23.9 billion out of the stock market in the latest week, marking the largest withdrawals from those funds on record, but bulls were still encouraged by strength in the global economy and solid U.S. corporate earnings.

Also, the percentage of Main Street investors expecting stocks to fall reached a three-month high in the American Association of Individual Investors&#39; weekly survey.

During Friday&#39;s session, the S&amp;P 500 briefly broke below its 200-day moving average, a closely watched technical level, before rising.

&quot;You will often see bounces off those levels,&quot; said Anwiti Bahuguna, senior portfolio manager at Columbia Threadneedle Investments in Boston.

The S&amp;P 500 lost $2.49 trillion in market value from Jan. 26 through Thursday, according to S&amp;P Dow Jones Indices.

Volatility remained high compared to recent months. The market&#39;s main gauge of volatility, the CBOE Volatility Index, fell 4.4 to 29.06 on Friday but was still nearly three times the average level of the past year.

In the latest day of strong trading volume, about 12 billion shares changed hands in US&nbsp;exchanges on Friday, well above the 8.5 billion daily average over the last 20 sessions. It was the first time weekly volume eclipsed 50 billion since August 2015.

Advancing issues outnumbered declining ones on the NYSE by a 1.43-to-1 ratio; on Nasdaq, a 1.36-to-1 ratio favoured advancers.

The S&amp;P 500 posted no new 52-week highs and 47 new lows; the Nasdaq Composite recorded 17 new highs and 208 new lows.

&nbsp;

Investors have braced for more volatile trading days ahead

US stocks ended a wild week with a burst of buying, pushing the S&P 500 up 1.5 per cent on Friday, but still recorded their worst week in two years, and investors braced for more volatile trading days ahead. The sharp falls of the week confirmed the market was in a correction, down more than 10 per cent from a January 26 record high, and throwing the nearly nine-year bull market off course. The newly volatile market was shaken in part by rising bond yields, which led stock investors to rethink their positions after months of steady gains. The S&P 500 ended the week nearly 9 per cent below the all-time high set just two weeks ago. “I don't see any reason to think that we're setting a pattern for next week or the rest of the year," said Rob Stein, the chief executive officer of Astor Investment Management in Chicago. "The only pattern we're setting is more volatility." On Friday alone, the S&P 500 swung from gains of up to 2.2 per cent to declines of 1.9 per cent, echoing the big swings of the past week. The Dow moved in a range of more than 1,000 points, a more modest change than on Monday when the Dow fell as much as nearly 1,600 points. The Dow Jones Industrial Average rose 330.44 points, or 1.38 per cent, to 24,190.9, the S&P 500 gained 38.55 points, or 1.49 per cent, to 2,619.55, and the Nasdaq Composite added 97.33 points, or 1.44 per cent, to 6,874.49. Technology was the best-performing group on Friday, with Microsoft Corp, Alphabet Inc and Facebook Inc giving the biggest individual boosts to the S&P 500. The energy was the lone major S&P sector to end negative as oil prices tumbled. The benchmark S&P 500 fell 5.2 per cent for the week, its biggest weekly percentage drop since January 2016. For the week, the sector that got hammered the most was energy. Ninety-six S&P 500 stocks are down 20 per cent or more from their own one-year highs, according to Thomson Reuters data. The sharp selloff in recent days was kicked off by concerns over rising inflation and bond yields, sparked by last week's January US jobs report. "You have a fundamental difference between the economy and earnings doing well, versus interest rates going up and inflation picking up, and it’s still a question of which will dominate," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois. Equities for years have looked relatively attractive compared to the low yields offered by bonds, but the rise in Treasury yields has diminished the allure of stocks, especially with stock valuations at historically expensive levels. The yield on benchmark 10-year US Treasuries hovered around 2.85 per cent after touching a four-year peak of 2.885 per cent on Monday. “That’s part of this recalculation that has gone on in the market: How do we factor in higher bond yields?" said Willie Delwiche, investment strategist at Baird in Milwaukee. "And that is a process that is playing out." US fund investors sucked $23.9 billion out of the stock market in the latest week, marking the largest withdrawals from those funds on record, but bulls were still encouraged by strength in the global economy and solid U.S. corporate earnings. Also, the percentage of Main Street investors expecting stocks to fall reached a three-month high in the American Association of Individual Investors' weekly survey. During Friday's session, the S&P 500 briefly broke below its 200-day moving average, a closely watched technical level, before rising. "You will often see bounces off those levels," said Anwiti Bahuguna, senior portfolio manager at Columbia Threadneedle Investments in Boston. The S&P 500 lost $2.49 trillion in market value from Jan. 26 through Thursday, according to S&P Dow Jones Indices. Volatility remained high compared to recent months. The market's main gauge of volatility, the CBOE Volatility Index, fell 4.4 to 29.06 on Friday but was still nearly three times the average level of the past year. In the latest day of strong trading volume, about 12 billion shares changed hands in US exchanges on Friday, well above the 8.5 billion daily average over the last 20 sessions. It was the first time weekly volume eclipsed 50 billion since August 2015. Advancing issues outnumbered declining ones on the NYSE by a 1.43-to-1 ratio; on Nasdaq, a 1.36-to-1 ratio favoured advancers. The S&P 500 posted no new 52-week highs and 47 new lows; the Nasdaq Composite recorded 17 new highs and 208 new lows.

Wall Street rebounds but posts worst week in two years