Stocks get boost from Yellen, break 4-day losing streak
Stocks got a boost in late trading and closed higher Friday, breaking a 4-day losing streak, after Federal Reserve Chair Janet Yellen said in a speech the central bank will raise interest rates only gradually.
Yellen cited a persistent slack in the labor market and the risks of another economic downturn as reason for the Fed to go slow.
At the same time, she said that while the Fed doesn't need inflation to pick up before raising its benchmark rate, a further significant weakening of inflation or wage growth would make her "uncomfortable" with a rate hike.
The Standard & Poor's 500 index moved back into positive territory for the year after the recent downturn sent the major indexes back into the red. The S&P 500 rose 4.87 points, or 0.2%, to 2061.02.
The Dow Jones industrial average rose 34.43 points, or 0.2%, to 17,712.66 and the Nasdaq composite index gained 27.86 points, or 0.6%, to 4891.22.
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Despite the advance, stocks still posted steep weekly losses as the Dow fell 2.3% and the S&P 500 dropped 2.2%.
Concerns about upcoming interest rate hikes, falling corporate profits and rising geopolitical tensions have contributed to the recent downturn.
The conflict in Yemen was in focus in the oil market. Crude prices fell back below $50 a barrel as U.S. benchmark crude dropped about 5% to $48.87 a barrel in electronic trading on the New York Mercantile Exchange. It gained 4.5% to close at $51.43 a barrel on Thursday.
In Asia, Japan's Nikkei 225 index fell 1%. Lackluster inflation, wages and household spending data are adding to expectations that Japan's central bank may resort to further monetary stimulus to spur growth there. Hong Kong's Hang Seng index fell less than 0.1%.
European markets were mixed as Britain's FTSE 100 was down 0.6% and Germany's DAX index gained 0.2%.
Contributing: Paste BN's Paul Davidson
