By Yasin Ebrahim

Investing.com – The Dow gained Friday as dip-buying activity during the closing helped stock recover their losses. But that was too little too late, as the wider market plunged to its 8th consecutive weekly loss.

It gained 0.04% or 8 points, and dropped 0.30%. After recovering from an intraday slump which pushed losses to bear market territory, the gained 1 point.

Real estate, health care and energy helped the broader market recover, with the latter underpinned by a climb in oil prices, which racked up their fourth weekly gain in a row for the first time since mid-February. 

Technology also played a role in the rebound as investors bought the dip in big tech, with Apple (NASDAQ:) cutting losses to end in the green after falling more than 2%. Meta Platforms (NASDAQ) closed the day higher than 1%. 

After quarterly corporate results continued to highlight the effect of inflation, Wall Street was flooded with red as consumer discretionary led the charge. The Federal Reserve is showing little signs of slowing rate increases.

St. Louis Fed President James Bullard said Friday that raising rates by 50 basis points at upcoming meetings was a good plan, and stressed that higher interest rates would be needed to keep inflation under control.

Ross Stores (NASDAQ) fell more than 22% in the second quarter after its first-quarter results were below Wall Street’s estimates. The off-price retailer also cut its guidance due to rising transportation costs.

As the results of Walmart (NYSE 🙂 are less favorable, so is that of all other retailers. Target (NYSE: ) Reports earlier in the week also raised concerns over inflation.

Deere (NYSE 🙂 reported, however, that it missed the top line and highlighted the effects of inflation and supply chain problems ahead. This sent its shares down more than 14%.

Foot locker Inc (NYSE 🙂 was able to defy the trend and ended the day over 4 percent higher, after it reported a greater-than-expected profit. The footwear retailer helped outsell softer sales.

Stocks had made a positive start to the day after China’s move to cut a key lending benchmark to support its economy, which has been impacted by recent lockdown measures in Shanghai and elsewhere, eased fears about slowing global growth.

“Investors appear more optimistic this morning after a volatile week as China takes its latest step to bolster the country’s economy,” Stifel said in a note earlier on Friday.

Some speculate whether the stock market will see a bottom soon after the eighth consecutive weekly decline. However, experts warn there may be more trouble ahead because investor capitulation is at the level of previous market declines.     

“We have been encouraged by the breadth and manic selling activity occurring a few days throughout the recent correction cycle, however, we are not yet seeing comparable ‘capitulation metrics’ relative to the 2018 or 2020 market downturns,” Janney Montgomery Scott said in a note. 

The report stated, “This indicates to us that even though the market is in or close to bottom ranges, there may need to be more volatility to get them out of their current state.”