Stocks staged a rebound and major averages soared 2% on the back of a rally in tech stocks. Crude oil dropped 2% on the worries that the rapid rise in China's Covid-infections may spread to the rest of the world.
Investors focus on the upcoming earnings releases in two weeks and weighed the earnings outlook in a slowing global economy against the resilient U.S. consumer and reopening in China.
The rise in U.S. Treasury yields sapped market sentiment and dragged tech stocks lower. China-linked stocks traded higher on reopening optimism but Tesla and Apple fell to one-year lows.
Stocks lacked direction in holiday-shortened last week of 2022 as investors focused on portfolio rebalancing and weighed economic outlook and earnings revisions.
The Nikkei index in Tokyo closed higher following the easing of U.S. inflation. Governor Kuroda stressed that the recent yield band widening move is not the end of ultra-loose monetary policy. China indexes gained despite the rapid spread of Covid infections.
The S&P 500 and the Nasdaq Composite closed higher but closed down for the third week in a row. Bond yields advanced and crude oil gained for the second week in a row.
Stocks lacked direction after durable goods orders fell and core inflation index rose at a faster-than-expected pace in November. Major averages are set to close down for the third week in a row.
Asian markets extended losses after coronavirus infections in China kept social mobility in check and raised the fears of prolonging the supply chain disruptions. Stocks in Tokyo declined on resurgence of inflation.
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