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* Rivian gains as higher deliveries drive Q2 revenue beat
* Nasdaq, S&P 500 set for fourth weekly gain
* S&P 500 briefly recovers 50% of bear market loss
* Indexes up: Dow 0.56%, S&P 0.84%, Nasdaq 1.20%
Aug 12 (Reuters) - Wall Street's main indexes rose on
Friday, setting the S&P 500 and the Nasdaq for a fourth straight
week of gains on increasing evidence that inflation may have
The S&P 500 is up 16.8% from its mid-June low, with
the latest boost coming from a slower-than-expected rise in
consumer prices and a surprise drop in producer prices in July.
The benchmark index crossed a closely watched technical
level of 4,231 points, indicating it has recovered 50% of its
bear market loss. It was headed for fourth straight week of
gains, its best performance since November 2021.
"We're seeing a market that is focusing on inflation peaking
and so the rally is continuing, although volume is rather
light," said Peter Cardillo, chief market economist at Spartan
"Investors are becoming more optimistic in terms of the Fed
not being as aggressive as the market previously had expected."
While policymakers remain firm about a further tightening in
monetary policy until inflation pressures fully abate, traders
see a 55.5% chance of the Fed raising rates by 50 basis points
next month instead of a 75 basis points hike.
The Fed has raised its policy rate by 225 basis points since
March as it battles to cool demand without sparking a sharp rise
Ten of the 11 major S&P 500 sectors advanced, with
communication services and information technology
stocks leading the gains.
High-growth and technology stocks such as Apple Inc
and Alphabet rose more than 1% each as investors
returned to riskier assets and Treasury yields dipped after a
Growth stocks have underpeformed their value
counterparts so far this year on worries that rising
Treasury yields due to aggressive rate hikes will pressure their
Investors bought $7.1 billion in equities in the week to
Wednesday, according to a Bank of America note, with U.S. growth
stocks recording their largest weekly inflow since December last
"The major indices are trading near highs going back to May
and June and those highs are now serving as near-term
resistance," said Adam Sarhan, chief executive of 50 Park
Meanwhile, banks rose 0.5% and were on track to
extend their rally for sixth straight week, with JPMorgan &
Chase and Morgan Stanley advancing 0.7% each.
Data showed U.S. consumer sentiment ticked further up in
August from a record low this summer and American households'
near-term outlook for inflation eased again on easing gasoline
At 11:44 a.m. ET, the Dow Jones Industrial Average
was up 185.45 points, or 0.56%, at 33,522.12, the S&P 500
was up 35.45 points, or 0.84%, at 4,242.72, and the Nasdaq
Composite was up 153.87 points, or 1.20%, at 12,933.79.
After a rough start to the year, better-than-expected second
quarter earnings from corporate America have supported the
upbeat sentiment for U.S. equities.
Of the 456 S&P 500 companies that have reported earnings so
far, 77.6% have topped profit expectations, as per Refinitiv
Rivian Automotive Inc rose 1% as the
electric-vehicle maker reported better-than-expected second
GlobalFoundries Inc jumped 11.2% on being added to
BofA Global Research's "U.S. 1 list."
Advancing issues outnumbered decliners by a 2.76-to-1 ratio
on the NYSE and by a 2.37-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and 29 new
lows, while the Nasdaq recorded 47 new highs and 28 new lows.
(Reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in
Editing by Arun Koyyur)