NEW YORK: U.S. stocks rose, wrapping up their biggest weekly gain of the year on a rebound that followed the U.K.’s vote to leave the European Union.
The Dow Jones Industrial Average and the S&P 500 both rose more than 3% this week and are now down less than a percentage point from their pre-Brexit levels.
U.S. stock-trading volume on Friday was the lowest since June 23, the day before the referendum result sent stock markets lower around the world.
Many stock markets have rebounded sharply since Tuesday on hopes that central banks around the world would help shore up liquidity and keep monetary policy loose. The gains left the Dow industrials and S&P 500 back near their record closes.
However, many investors say longer-term Brexit-related risks remain, particularly in the U.K. and Europe. The European Central Bank’s top economist warned Friday that the vote could reverse recent improvements in the euro-area economy.
Bond yields are hitting all-time lows around the world. The yield on the 10-year U.S. Treasury note touched a record low during intraday trading Friday before bouncing back to close at 1.446%.
“It’s way too early to assume simply because equity markets have rebounded somewhat that there’s nothing to worry about,” said Abi Oladimeji, chief strategist at Thomas Miller Investment in London. The epicenter of the fallout will be in the U.K. and Europe, he said, which are likely to face the greatest economic, financial-markets and political repercussions.
The Dow Jones Industrial Average rose 19.38 points, or 0.1%, to 17949.37, posting a fourth consecutive day of gains. The S&P 500 climbed 4.09 points, or 0.2%, to 2102.95 and the Nasdaq Composite Index advanced 19.89 points, or 0.4%, to 4862.57.
Consumer-discretionary shares rose the most in the S&P 500, climbing 0.9%.
Harley-Davidson gained $8.95, or 20%, to $54.25. Netflix rose 5.19, or 5.7%, to 96.67 and Royal Caribbean Cruises advanced 1.96, or 2.9%, to 69.11.
The Stoxx Europe 600 rose 3.2% for the week but remains below where it was before the referendum result. London’s export-oriented FTSE 100 index, whose revenues are largely derived from outside the U.K., notched its largest one-week percentage gain since 2011 and has recouped its Brexit losses. The Stoxx Europe 600 Banks Index fell 2.4% this week.
Japan’s Nikkei Stock Average rose 4.9% for the week.
