S&P 500 Rises Amid Recession Fears: A Week in Review

The S&P 500 saw an uptick at the end of a volatile week marked by fears of a recession and unwinding of yen-funded carry trades. Tech stocks buoyed the index, while the Fed's signals on inflation and rate cuts were closely watched. Investors are bracing for upcoming economic data.

The S&P 500 ended higher on Friday, rebounding from a steep dive earlier in the week due to recession fears and unwinding of global yen-funded carry trades. Tech stocks provided a significant boost, while Wall Street's 'fear gauge,' the Cboe Volatility Index, declined after an initial surge.

The market's downturn on Monday was triggered by a weaker-than-expected July jobs report, which heightened recession fears and led investors to unwind positions involving the Japanese yen. Robert Phipps, director at Per Stirling Capital Management, remarked that investors are searching for signs of market bottoming.

Federal Reserve policymakers expressed confidence on Thursday that cooling inflation could pave the way for future rate cuts, basing their decisions on upcoming economic data. For the week, the Dow declined by 0.6%, while the S&P 500 and Nasdaq edged down 0.05% and 0.2% respectively. Investors are now focusing on next week's consumer price and retail sales data, which might offer insights into the economy's trajectory.

(With inputs from agencies.)