Europe Asia News

The blue-chip index rose 493.15 points, or 1.08 percent, to close at 46,245.41. The Nasdaq Composite ended up 0.88 percent at 22,273.08, while the S&P 500 gained 0.98 percent to finish at 6,602.99. The Dow Jones Industrial Average climbed 493.15 points, or 1.08 percent, to 46,245.41.

Despite Friday’s upside moves, the three major indexes still posted steep losses for the week. The S&P 500, like the 30-stock Dow, ended the week down about 2 percent. The Nasdaq lost 2.7 percent over the same period.

According to analysts, Fed funds futures are now pricing in a probability of more than 70 percent for a quarter-point rate cut, up from less than 40 percent priced in the previous day.

Stocks that stand to benefit the most from lower interest rates, which could boost consumer spending, led the market’s rebound. Among them were Home Depot, Starbucks and McDonald's. Investors hope that looser monetary policy could revive the sluggish economy and justify the historically high valuations of technology stocks.

Speaking about the recent pressure on the market, Hatfield said this is “a normal, seasonal, post-earnings valuation pullback,” adding that “the bubble part of the market is disappearing.”

That includes bitcoin, which fell more than 2 percent on Friday, bringing its weekly losses close to 11 percent. As investors shy away from taking risks, the cryptocurrency has dropped to levels not seen since April.

Regarding the overall market, Hatfield said: “The only real question is, ‘Where will we find the bottom?’”