As investors assessed the latest batches of corporate earnings from major banks and markets got a boost from stronger-than- expected retail sales, the stock market opened higher on Friday.
Markets are trying to get back in the win column.
The S&P 500 gained 1.1% and the tech-laden Nasdaq was up 1.1%, as the markets rebounded.
The Commerce Department data showing a 1% increase in retail sales in June gave investors a boost.
Wells Fargo's shares fell 1% after the bank set aside money for bad loans and reported a decline in profits.
Citigroup's shares rose 3% after the bank reported strong revenue and profits that exceeded analyst expectations.
Morgan Stanley and JP Morgan Chase both saw large declines in profits a day earlier due to a volatile market environment.
Despite Friday's gains, markets are still roiled by recession fears, with the latest red-hot inflation data increasing the likelihood of bigger rate hikes from the Federal Reserve.
Jeffrey Roach predicts that the US will post positive growth figures for Q2 and avoid two consecutive quarters of negative growth. He says that if the consumer is stable enough, the Fed could implement a large hike.
The stock market has lost five days in a row, coming off of a mixed session on Thursday. The S&P 500 is down more than 20% since the beginning of the year.
China's economic growth took a big hit after months of Covid lockdowns in major cities. The country's second-quarter GDP grew by just 0.4% compared to a year ago, a sharp decline from the 4.8% growth rate in the first quarter of 2022.
The stock market lost 100 points after the disappointing bank earnings.
The index fell after the inflation report added to fears of a recession.
Inflation spiked in June, hitting a new 40-year high.
Wall Street Firms Slash S&P 500 Price Targets.
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