Stocks rose Friday in a modest but broad rally that erased much of the losses from earlier in the week when investors had sold over fears of rising interest rates.
Health care and technology stocks rose the most, helping to nudge the Standard and Poor’s 500 index back to slight gains for the week and year. Nine of the index’s 10 sectors closed higher.
Investors were spooked earlier in the week when the Federal Reserve released minutes of its last meeting that suggested it may raise rates in June, something the market had not expected. They scrambled to readjust portfolios, dumping oil and copper, U.S. Treasury bonds and stocks of steady dividend payers like utilities that tend to fall when rates rise.
But on Friday a measure of calm returned. U.S. bonds barely moved, commodities ended mixed and utilities rose, albeit just 0.2 percent.
The S&P 500 rose 12.28 points, or 0.6 percent, to 2,052.32. The Dow Jones industrial average ended the day up 65.54 points, or 0.38 percent, to 17,500.94. The Nasdaq composite climbed 57.03 points, or 1.2 percent, to 4,769.56.
Applied Materials led the move higher in technology stocks. The maker of chipmaking equipment jumped $2.75, or 14 percent, to $22.66 after reporting earnings ahead of analysts’ forecasts.
Interoil, jumped $11.92 to $43.57 after rival Oil Search announced a deal to buy the company for $2.2 billion.
Friday’s gains notwithstanding, the major indexes have barely moved this year.
Steven Ricchiuto, chief economist at Mizuho Securities, says investors are uncertain about the strength of the economy, and that’s reflected in their unwillingness to commit themselves to buying.
Jim Paulsen, chief investment strategist for Wells Capital Management, thinks investors will eventually come around. He said he welcomes Fed talk of a rate increase because it shows things are getting better.
Benchmark U.S. oil fell 33 cents at $48.34 a barrel in New York. Brent, used to price international oils, lost 4 cents to $48.68 a barrel in London.
