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U.S. stocks break losing streaks for best week since 2020

U.S. stocks break losing streaks for best week since 2020
Traders work on the floor of the NYSE at the opening bell at the New York Stock Exchange on Wall Street in New York City on May 9. File Photo by John Angelillo/UPI | License Photo

May 27 (UPI) -- The three major stock indexes in the United States made gains this week, rebounding some from weeks of losses for the best week since November 2020.

U.S. stocks marked the longest streak of weekly losses since 2001 by the end of trading last week. The S&P 500 rose 2.8% on Friday and by more than 6.5% since last Friday, when it fended off a bear market, to end a seven-week losing streak at 4,158.24.

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The Nasdaq Composite, which has been in a bear market since April 29, sat 30% down from its recent all-time high by the end of trading last week. It rose 3.3% on Friday to end the week at 12,131.13 points, up 6.8% from last week.

The Dow Jones Industrial Average rose 1.8% to close the week at 33,212.96.

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The Friday rally came as investors considered a new economic report from the U.S. Department of Commerce, favored by the Federal Reserve as a gauge for inflation, which found that inflation had slowed some in April.

"Overall the U.S. consumer still remains in great shape. They came into these price hikes, this inflation, with cushion on their balance sheet," Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, told Yahoo Finance Live.

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"Certainly, employment is high, so the overall U.S. consumer remains in a very strong place."

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Experts framed the gains this week as a "repositioning" or a "bear bounce" rather than a bear rally.

"When you look at these bounces we've had, they've been on very light volume, there's not a lot of conviction," Eddie Ghabour, co-founder and managing partner of Key Advisors Group, told Yahoo Finance Live.

"The data that we're getting now that's been causing this sell-off, remember, is first-quarter data. The data coming in the second quarter is going to be worse than the first quarter. And we're not going to get that news until July."

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Jeff Kilburg, chief investment officer of Sanctuary Wealth, told CNBC that the change this week was a "repositioning" because "a lot of people got too pessimistic."

"I go back to interest rates. When you saw Treasurys have that pop above 3%, it wasn't sustainable," Kilburg said.

"When it came under 2.75% that allowed equities to heal, that was the all-clear short-term to come back into equities."

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