Dow posts biggest weekly rally since 2016

By StocksFOXBusiness

The Dow extended its winning streak Friday, though stocks ended the day mixed after authorities revealed indictments of Russians who allegedly interfered in U.S. elections.

The Dow Jones Industrial Average gained about 19.01 points, or 0.08%, to 25,219.38. The S&P 500 added 1.02 points, or 0.04%, to 2,732.22. The Nasdaq Composite fell 16.96 points, or 0.23%, to 7,239.47.

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The S&P 500 and Dow industrials have mounted a six-day rally in the wake of last week’s broad sell-off, bringing all three major indexes back into positive territory on the year. The Dow clinched its best weekly percentage gain since November 2016, while the S&P 500 had its best week in more than five years. Concerns over rising inflation were subdued this week, even as the Labor Department reported a stronger increase in consumer prices than expected.

Wall Street briefly erased its gains Friday after special counsel Robert Mueller indicted 13 Russian nationals on charges of committing “information warfare” against the U.S. in advance of the 2016 election. The stock market bounced back when Deputy Attorney General Rod Rosenstein said the indictments included no allegations that any American knowingly colluded with Russia. He added that the indictments do not allege that the information campaign impacted the election’s outcome.

The CBOE Volatility Index, Wall Street’s “fear gauge” and a measure of price swings in the market, rose 2.9% to 19.68 in afternoon trading.

The yield on the 10-year Treasury note pulled back after hitting a new four-year high of 2.94% Thursday. The benchmark yield fell to 2.87% in recent trading. Gold continued to tick lower, falling 0.35% to $1,350.60 an ounce.

West Texas Intermediate crude rose 34 cents, or 0.6%, to $61.68 a barrel. Oil services company Baker Hughes (NYSE:BHGE) said the number of active U.S. rigs remained steady at 975. The domestic rig count is 224 compared to the same week last year, reflecting the industry’s efforts to capitalize on a rebound in prices.

In the latest read on housing starts, new home construction reached its highest level since October 2016. Building permits, a gauge of future construction, posted their strongest levels since 2007.

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