Stocks ended a volatile week on a high note, with all three market averages closing higher on Friday as sentiment was boosted by economic reopening optimism. The positive momentum led to the Dow and S&P 500 gaining about 1.4% and 1.6%, respectively, for the week, while the Nasdaq slightly fell 0.6%, as valuation concerns and climbing interest rates affected tech names all week.
In U.S. economic news, personal income and consumer spending rates fell in February at a more-than-expected rate, according to the Commerce Department. Personal income dropped by 7.1% in February following a 10.1% surge in January, supported by the $600 stimulus checks given out at the start of the year. Consumer spending fell by 1%, partially reversing January's 3.4% gain.
Meanwhile, consumer sentiment rose to its highest level in a year in March, as stimulus checks and the accelerating vaccine rollout boosted economic sentiment. The University of Michigan's final March consumer sentiment index reading was 84.9, up from February's 76.8 and from the preliminary monthly reading of 83.0.
Here's how the market settled to close out the week:
S&P 500 Index (NYSE: SPY): +1.66% or +65.02 points to 3,974.54
Dow Jones Industrial Average (NYSE: DIA): +1.39% or +453.40 points to 33,072.88
Nasdaq Composite Index (NASDAQ: QQQ): +1.24% or +161.05 points to 13,138.72
For Stocks, shares of big bank names like Bank of America (NYSE: BAC) or JPMorgan Chase (NYSE: JPM) rose after the Federal Reserve announced that banks could resume buybacks and raise dividends starting at the end of June. Second-hand apparel retailer ThredUp (NASDAQ: TDUP) popped over 42% in its public debut.
For Sector Performance, sectors ended the session mostly in the green, with only Communication Services (NYSE: XLC) falling slightly lower. Real Estate (NYSE: XLRE), Materials (NYSE: XLB), Information Technology (NYSE: XLK) and Energy (NYSE: XLE) led gains by over 2%, while Health Care (NYSE: XLV), Consumer Staples (NYSE: XLP), Industrials (NYSE: XLI) and Financials (NYSE: XLF) all rose over 1%.
For Commodities and Currency, the U.S. Dollar (NYSE: UUP) settled flat against other major currencies on Friday as market participants remains optimistic toward the U.S. economy recovery. The dollar index was at 92.7 in late afternoon trading, which is near its four-month peak. Gold (NYSE: GLD) prices gained slightly, despite the stronger dollar. Spot gold increased 0.3% to $1,732.11 per ounce, while U.S. gold futures settled 0.4% higher at $1,732.30 per ounce. Crude oil futures rebounded from their previous session declines as the container ship remains stuck in the Suez Canal, which can potentially block the shipping lane for weeks. International benchmark Brent Crude (NYSE: BNO) settled 4.23% higher at $64.57 per barrel, while domestic index West Texas Intermediate (NYSE: USO) climbed 4.12% to $60.97 each. Both benchmarks had fallen 3.8% and 4.28%, respectively, in the previous session.
For the week ahead, traders will look to make end-of-quarter decisions amid the shortened U.S. holiday week.