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By Connor
Smith | Friday, March 18 Three
Broomsticks. Stocks
wrapped up their best week since the 2020 election as momentum continued on
Friday amid a so-called triple-witching day. The Dow Jones Industrial Average
rose 5.5% on the week, snapping a five-week losing streak. The S&P
500 index fared even better with a gain of 6.2%, though year
to date it's still down 6.4%. The Nasdaq Composite rose 8.2%
on the week and turned in its largest weekly point gain on record. Each of
the three major indexes posted their largest percentage gains since the week
ending Nov. 6. Friday was the biggest triple witching day
in memory, with some $3.5 trillion in options set to expire with more
near-the-money options maturing than at any time since 2019, according Louis
Navellier, founder of Navellier & Associates. "Option influence has grown
dramatically since the pandemic began and has been exaggerating equity
movements in both directions," Navellier wrote. "Today
could be especially colorful in this arena." Indeed, traders were busy on Friday. The
NYSE Composite posted its largest volume day since Jan. 27,
2021—amid GameStop-driven meme mania. The Nasdaq Composite
posted its largest volume since Feb. 11, 2021. On the day, the Nasdaq rose 2.05% while the
S&P 500 was up 1.2%. The high options interest followed this
week's momentous interest rate move from the Federal Reserve. The decision to
raise rates didn't weigh on stocks Thursday or Friday, though. Quite the
contrary. "Markets took the development in stride
and rose on Friday despite rise in hawkish commentary," the team at
Fundstrat write. "While this week’s bounce was
very encouraging, ominous risks remain and the potential for choppiness
remains throughout the first half." Inflation and geopolitical worries about
Russia and Ukraine surely remain on investors' radars. But this week, the
luck of the Irish followed by some witchcraft seemed to just what markets
needed to mount a comeback. |
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DJIA: +0.80% to 34,754.93 The Hot Stock: Match
Group +7.8% Best Sector: Consumer
Discretionary +2.1%
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