Markets Bounce Back After Last Week's Lull

Dow jumps 407 points
By Newser Editors and Wire Services
Posted Aug 7, 2023 3:58 PM CDT
Markets Regain Momentum After Last Week's Lull
Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview in Omaha, Nebraska.   (AP Photo/Nati Harnik, File)

Stocks climbed Monday as Wall Street's big rally for the year kicked back into gear following a brief hiccup. The S&P 500 rose 40.41, or 0.9%, to 4,518.44 and recovered more than a third of its loss from last week. That was its first losing week in four and just its third in the last 12, the AP reports. The Dow Jones Industrial Average rallied 407.51 points, or 1.2%, to 35,473.13, and the Nasdaq composite added 85.16, or 0.6%, to 13,994.40. Berkshire Hathaway rose 3.6% and was a major force lifting the market after the company run by famed investor Warren Buffett reported stronger profit and revenue for the spring than analysts expected.

Pharmaceutical company Viatris also rose after its results topped forecasts. Viatris's stock climbed 3.9%. The stronger-than-expected reports helped offset a 3.8% drop for Tyson. The company's results for the latest quarter fell far short of analysts' expectations, and Tyson said it would close four chicken facilities as it tries to cut costs. Tesla also weighed on the market with a 1% drop. The electric vehicle maker said its chief financial officer, Zachary Kirkhorn, stepped down last week after four years in the position.

Besides profit reports from some media giants like The Walt Disney Co. and Fox, this upcoming week also features highly anticipated reports on inflation, which has come down from more than 9% last summer to 3% in June. But many economists and professional investors say the toughest part may still be ahead as the Fed tries to get inflation down toward its 2% target. On Thursday, the US government will release the latest monthly update on inflation that consumers are feeling, and economists are forecasting it will show a 3.3% rise in prices from year-ago levels. That would be an acceleration from June's inflation rate.

(More stock market stories.)

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