Stocks extend gains on Friday and head towards a week of gains as the Dow Jones jumps 700 points

Stocks rose in choppy trading on Friday as investors evaluated more corporate earnings reports and expectations for a Federal Reserve rate hike.

The Dow Jones Industrial Average rose 727 points, or 2.4%. The S&P 500 rose 2.3%. The Nasdaq Composite Index rose 2.2%.

Friday’s gains put the market on track for a positive week, with the four major averages rising more than 4%. The gains were made despite the 10-year Treasury yield rising to its highest level since 2008 and a mixed batch of corporate earnings reports.

“I think at the end of last week, the market had a little bit of a sell-off technically. And as we’ve seen many times in the past, when things get negative enough, it becomes kind of a contrarian indication for a rebound,” Randy said. Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.

“But like any other bounce we’ve had, it hasn’t been well sustained. …The bounce today doesn’t necessarily mean it will continue into the next week. If it does, I think it won’t be more than a day or two.”

Banking stocks were a bright spot on Friday, with Goldman Sachs up 4.5% and JPMorgan Chase up 4.7%.

Earnings reports limited gains to the market. Component Dow Jones American Express and Verizon fell 2.8% and 4.4%, respectively, after their quarterly reports. In technology, social media company Snap plunged 31% after reporting quarterly revenue of $1.13 billion, missing expectations.

Treasury yields fell from their highs on Friday morning after a… A report from the Wall Street Journal Some Fed officials are concerned about raising interest rates too much. This report appears to be boosting stocks as well.

Big interest rate increases by the central bank have been a major factor in plunging stocks into a bear market this year, and traders continue to raise their estimates of where the Fed will pause.

“We really need a pause from the Fed. Not so much that they won’t shrug off future rate hikes, but they’ll just say every meeting is live, and if the data goes our way, then after the first half of ’23 we don’t,’” said Barry Bannister, Senior Stifel Equity Strategists, on “Squawk on the Street,” say we need to do more.