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(Bloomberg) — A wave of dip buying powered a rebound in stocks as traders looked past Broadcom Inc.’s underwhelming outlook to fuel gains in several industries that tend to benefit from a resilient economy.
The insatiable appetite for equities that has sent the S&P 500 up 20% from war-driven lows is sending the benchmark toward its longest streak of weekly gains since 1985. In the run-up to jobs data that’s expected to reveal solid growth, the Dow Jones Industrial Average hit all-time highs. While Broadcom was still down 13%, a gauge of chipmakers trimmed most of an earlier slump. The Nasdaq 100 was little changed. Small caps rallied.
“Today is yet another example of the continued success of buying the dip,” said veteran strategist Louis Navellier.
A slide in oil also helped Wall Street sentiment as a conditional ceasefire between Israel and Lebanon offered to ease the way toward a peace deal in the Middle East, even as the truce was marred by clashes. Both Iran and the US broadly say the talks are ongoing and signal they want to reach an agreement.
