On Friday, U.S. stocks made a significant rebound, recovering from a downward turn earlier in the week.

The S&P 500 index rose approximately 74 points, or 1.3%, closing at 5,942. The Nasdaq, known for its technology focus, increased by 341 points (about 1.8%) to finish at 19,622. The Dow Jones Industrial Average also experienced gains, ending the day at 42,732 with a rise of nearly 340 points.

These positive results followed a decline on Thursday. “The market was a bit oversold, which set the stage for a rebound,” said Mark Luschini, chief investment strategist and president of Janney Capital Management.

A more encouraging report from the Institute for Supply Management likely uplifted investor confidence. Although the ISM manufacturing index indicated a small contraction in December, the new orders component saw a significant increase, pointing to potential improvement in economic activity, according to Luschini as mentioned in YSL News.

Investors seemed to overlook recent worries about rising inflation, which had previously pushed bond yields higher. On Friday, the yield on the 10-year U.S. Treasury note rose by 2 basis points, continuing its increase of nearly a full percentage point since mid-September. Higher inflation reduces the attractiveness of the fixed returns from bonds, leading to rising yields when bond prices fall.

In contrast, shares of beverage producers faced considerable losses after the surgeon general urged that these products display cancer risk warnings. Anheuser-Busch InBev, which owns brands such as Budweiser and Corona, saw its stock drop by over 2%. Diageo, known for liquor brands like Johnnie Walker and Guinness, experienced a nearly 4% decline.

On a brighter note, Rivian Automotive, Inc. shares soared over 24% after the company revealed it outperformed analysts’ forecasts for car deliveries. This positive turn followed a report from competitor Tesla Inc., which witnessed its first annual drop in deliveries in 2024.

(This article has been updated with new information.)