Dow closes up 400 points, S&P 500 rises for fourth straight week as

Stocks rallied into the close, with the Dow rising more than 400 points and the Nasdaq popping by more than 2%. The Nasdaq and S&P 500 clinched their fourth straight positive week.

— Jesse Pound

The market took another leg higher in afternoon trading, with the Dow up more than 300 points. Top performers in the 30-stock average include Disney, Merck and Apple.

The S&P 500 is now up nearly 3% for the week.

— Jesse Pound

“The Big Short” investor Michael Burry, known for calling the subprime mortgage crisis, warned that “addictive” consumer spending is signaling more trouble ahead.

“Net consumer credit balances are rising at record rates as consumers choose violence rather than cut back on spending in the face of inflation,” Burry said in a Friday tweet. “Remember the savings glut problem? No more. COVID helicopter cash taught people to spend again, and it’s addictive. Winter coming.”

Burry suggested that consumers were still splurging on goods and services at a time when inflation remained at a multi-decade high.

The investor, now running hedge fund Scion Asset Management, has been negative about the markets and the economy. In May, he drew parallels between today’s market environment and that of 2008, saying it’s like “watching a plane crash.”

— Yun Li

A rough start to the week for semiconductors has turned into a small blip for the stock market, Bespoke Investment Group pointed out on Twitter.

After revenue warnings from Nvidia and Micron, the VanEck Semiconductor ETF fell sharply on Monday and Tuesday. But the ETF is now up slightly for the week.

Meanwhile, Nvidia is down just 2.6% for the week after falling 10% over Monday and Tuesday. Micron is up 4% for the week.

— Jesse Pound

Stocks are rising as the afternoon begins. The Dow is now up about 250 points, while the S&P 500 and Nasdaq Composite are up by 1% and 1.4%, respectively.

—Jesse Pound

The S&P 500 has risen above a key technical level for a second day, and if it closes there, that historically could be a signal that stocks have already bottomed.

For a second day Friday, the S&P 500 traded above thet 4,231 level, the 50% retracement from its peak to trough. It has not closed above that level.

Strategists who watch charts say if that level is cleared, then it typically would signal the market has already seen its bottom and will not return to the lows.

 “It does mean we’re not going to make the low, but it doesn’t mean we’re going straight up from here,” said BTIG’s Jonathan Krinsky. He said the big question is whether it will hold the level and close there, or just touch it on an intraday basis.

According to Krinsky, in data going back to 1950, the S&P has never returned to its low after closing above a 50% retracement.

He noted…