Dow Jones, S&P 500, and Nasdaq advanced on Friday after a three-day losing streak

The U.S. stock market ended sharply higher after a volatile session on Friday, and Wall Street’s three main indexes bounced back from losses earlier in the day. The U.S. economy created more jobs than expected in February, and the 10-year Treasury yield rose above 1.62% soon after the payroll data, its highest level in more than a year.

The U.S. added 379K jobs in February, which was above the estimates, while the unemployment rate contracted to 6.2%. According to analysts, higher lending rates make speculative equities less attractive, and the upcoming days may bring more concerns for stock market investors.

“Underemployment is still likely to put downward pressure on wages and thus also on inflation, at least this year and next. “We do not expect the Fed to start making its monetary policy somewhat less expansionary by scaling back its bond purchases until mid-2022,”  said Commerzbank economist Christoph Balz.

The U.S. dollar maintained its strength, and it is also important to mention that the U.S. Senate passed the $1.9 trillion stimulus package this Saturday. The U.S. stock market has already priced in a $1.9 trillion stimulus package, while higher inflation expectations will likely maintain government debt yields up.

S&P 500 up 0.8% on a weekly basis

For the week, S&P 500 (SPX) advanced by 0.8% and closed at 3,841 points.

If the price jumps again above 3,900 resistance, it would be a “buy “signal for the S&P 500, but if the price falls below 3,700 points, it would be a strong “sell” signal, and we have the open way to 3,500 points.

DJIA up  1.8% on a weekly basis

The Dow Jones Industrial Average (DJIA) rose 564 points, or 1.8%, to 31,496.

The Dow Jones Industrial Average remains in a bull market, but if the price falls below 30,000 points, it would be a firm “sell” signal. Wall Street analysts expect an equity pullback in the near-term; still, if the price jumps again above 32,000 points, the next target could be around 32,200 or even 32,500.

Nasdaq Composite down -2.1% on a weekly basis

 The Nasdaq Composite (COMP) has lost 2.1% on a weekly basis and closed at 12,920 points.

Nasdaq Composite continues to trade below 13,000 points, and the risk of further declines is still not over. If the price falls again below 12,500 points, the next target could be around 12,200 or even 12,000 points.

Summary

Wall Street’s three main indexes advanced on Friday after a three-day losing streak, supported by upbeat economic data. Dow Jones rose 1.8% for the week, the S&P 500 0.8%, while the Nasdaq lost 2.1%. The U.S. stock market has already priced in a $1.9 trillion stimulus package, and the upside potential for Wall Street’s three main indexes remains limited for now.