Positive housing news and subsiding Ebola fears helped drive the gains.
The S&P 500 closed the week with the largest weekly gain of the year on Friday, according to MarketWatch.
Strong housing data and surprisingly good quarterly results from companies like Procter & Gamble and Microsoft bolstered the market, as Ebola worries began to fade from investors’ minds. Overall, the S&P 500 was up 13.76 points — 0.7 percent — at the end of the week to 1,964.58. It is up 4.1 percent for the week, the biggest gain since January 2013, snapping a four-week downward trend.
Meanwhile, the Dow Jones Industrial Average finished up 127.51 points, a similar 0.8 percent gain for the day, ending at 16,805.41 — a 2.6 percent weekly gain. Nasdaq was up 30.92 percent, up an identical 0.7 percent, finishing at 4,483.72. That fund was up 5.3 percent for the week.
Positive news from the U.S. Commerce Department helped drive some of the good stock movements this past week. The Commerce Department reported that sales of new homes rose slightly last month to 467,000 annually, the highest in the last six years, which was better than expected.
Investors are anxiously awaiting stress test results coming Sunday for European banks with growth in the continent slowing. A Bloomberg report suggested that 25 banks could fail those tests.
The Federal Reserve will meet next week for a policy meeting, and investors expect that the Fed will end a third roun of bond buying. Investors will be watching to see if the Fed will change its plan to have a “considerable period” of a low funds rate. Not doing so and remaining confident in its outlook would provide a vote of confidence for the market.
Ebola worries are having an effect on the market, with stocks beginning to dive Friday morning after news broke that a New York doctor contract the virus. Ebola fears tend to cause investors to head to the safe haven of bond-buying.
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