US stocks make a strong comeback to cap off a wild week of trading

Clive Mason/ Getty Images

US stocks surged in late trading Friday to end a volatile week.

The three major indexes rose out of correction territory, defined as a 10% drop from the most recent highs, but still ended lower for the week. Here’s the scoreboard for Friday:

  • Dow: 24,192.76, +332.30, (1.39%)
  • S&P 500: 2,619.57, +38.57, (1.49%)
  • Nasdaq: 6,874.49, +97.33, (1.44%)
  • Illustrating the speed of this week’s drop, Ryan Detrick, a senior market strategist at LPL Financial, noted that it was the first time the S&P 500 corrected 10% from an all-time high within nine days.

    The worst of the sell-off began last Friday, when data on wages showed that inflation may be picking up and could prompt the Federal Reserve to combat it with higher interest rates. It was amplified this week by so-called target volatility funds that rushed to sell stocks and buy protection against higher volatility.

    “Over the coming months we should expect to see more turbulence as evidence of higher inflation becomes clearer,” said Torsten Slok, the chief international economist at Deutsche Bank, in a note.

    Investors will get more clarity on inflation next week Wednesday, when the January Consumer Price Index is released.

    Read more coverage of this week’s market meltdown:

    BAML: The Fed is doing something not seen since the 1987 market crash, and that could mean more pain for stocks

    A Fed official called the stock market’s plunge ‘small potatoes,’ but those comments miss the point

    The stock market just had a violent correction, and ‘it just doesn’t feel like we’ve hit a bottom’

    JPMorgan has found a trigger for the next big market collapse

    Wall Street is blaming a familiar culprit for the latest stock market bloodbath

    ‘The sell-off is starting to feel more real’: Wall Street explains why this massive stock drop is different

    CITI: There’s a ‘clear winner’ for investors who want to cash in on the market’s biggest fear

    The chief strategist at a $695 billion money manager tells us why ‘we’re at a watershed point in markets’

    One of the biggest narratives behind why the stock market just went haywire is wrong

    The infamous ‘VIX Elephant’ trader just returned to harvest the gains he made when stocks went haywire

    Fed President Kashkari gives us his take on the stock market’s plunge and the economic data that triggered it

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