U.S. stocks surge Friday on positive inflation data
NEW YORK, New York - U.S. stocks rebounded on Friday largely based on mroe encouraging ionflayion data. November's reading of the personal consumption expenditures price index increased 2.4 percent on an annualized basis. This was slightly below expectations.
"We're still on path to get to 2 percent and at least for this new month you don't want to make too much out of any one month, but I'm hopeful that this suggests that the couple of months of firming were more of a bump than a change in path," Chicago Fed President Austan Goolsbee told CNBC Friday.
S&P 500 (^GSPC):
The broad-market S&P 500 soared by 63.77 points to close at 5,930.85, a gain of 1.09 percent. Robust performances in tech, healthcare, and consumer discretionary stocks helped drive the index higher, as investors appeared more willing to embrace risk amid steady corporate earnings reports.
Dow Jones Industrial Average (^DJI):
Blue chips also moved higher, with the Dow Jones Industrial Average adding 498.02 points to reach 42,840.26, an increase of 1.18 percent. Gains were supported by strength in industrials, financials, and select manufacturing names, reflecting a positive outlook for some of the country's most influential corporations.
NASDAQ Composite (^IXIC):
The tech-heavy NASDAQ Composite climbed 199.83 points Friday to end at 19,572.60, up 1.03 percent. A wave of upbeat guidance from software, semiconductor, and cloud computing companies contributed to the index's rise, signaling that investors remain optimistic about long-term growth in the tech sector.
Outlook:
As investors head into the weekend, attention shifts to next week's economic calendar and the ongoing earnings season. The question now is whether this positive momentum can be sustained in the face of potential headwinds such as inflationary pressures, geopolitical developments, and central bank policies. For now, market participants appear to be taking a more optimistic stance, closing the week with renewed confidence in the global growth story.
Global Forex Markets Witness Dollar Weakness on Friday
The foreign exchange markets saw a broadly softer U.S. dollar heading into the weekend, with key major currencies gaining ground despite persistent global economic uncertainty. Profity-taking mainly spurred demand for certain risk-sensitive currencies and favored traditional defensive plays, following the week's surge in the greenback. Tthe US Dollar Index (DX-Y.NYB) declined by 0.75 points Friday, settling around 107.66, down 0.69 percent.
Euro / U.S. Dollar (EURUSD):
The euro climbed against the U.S. dollar, with the pair settling at 1.0434, up 0.74 percent for the session.
U.S. Dollar / Japanese Yen (USDJPY):
In Asia, the greenback slipped against the yen, as the U.S. dollar / Japanese yen pair fell to 156.16, down 0.79 percent. The Japanese currency benefited from a mild shift toward safe-haven assets and continued speculation that the Bank of Japan might gradually normalize its ultra-loose monetary policy.
U.S. Dollar / Canadian Dollar (USDCAD):
Against the Canadian dollar, the U.S. dollar eased to 1.4368 Friday, losing 0.20 percent.
British Pound / U.S. Dollar (GBPUSD):
Sterling advanced as well, gaining 0.66 percent to 1.2582 against the U.S. dollar.
U.S. Dollar / Swiss Franc (USDCHF):
The U.S. dollar also gave ground against the Swiss franc, as the pair settled at 0.8923, down 0.68 percent.
Australian Dollar / U.S. Dollar (AUDUSD):
The Australian dollar rose to 0.6258, up 0.33 percent. Although growth concerns in China persist, the Aussie found support from a marginal uptick in commodity prices and improving risk appetite in broader markets.
New Zealand Dollar / U.S. Dollar (NZDUSD):
New Zealand's currency followed a similar pattern, with the kiwi gaining 0.53 percent to trade at 0.56588. Investors' appetite for risk-sensitive currencies and expectations of a more stable interest rate environment contributed to the kiwi's gains.
Global Markets Close Mostly Lower Ahead of Weekend
Equity markets around the world broadly retreated on Friday, weighed down by concerns over economic growth and lingering uncertainty in the energy sector. European benchmarks finished mostly in the red, with only a few bright spots in select indices. Asian markets followed suit with modest declines.
CANADA
The S&P/TSX Composite Index advanced 185.54 points to close at 24,599.48, gaining 0.76 percent. Resource and financial stocks provided a lift, supported by firm commodity prices and steady demand across the energy and materials spaces.
UNITED KINGDOM
In London, the FTSE 100 (^FTSE) shed 20.71 points to close at 8,084.61, down 0.26 percent.
EUROPE
Germany's DAX P (^GDAXI) fell 85.11 points to 19,884.75, a decrease of 0.43 percent.
In France the CAC 40 (^FCHI) lost 19.89 points to end at 7,274.48, down 0.27 percent.
The EURO STOXX 50 (^STOXX50E) saw a drop of 16.72 points, settling at 4,862.28, or 0.34 percent lower, while the Euronext 100 (^N100) declined 4.14 points, closing at 1,436.88 for a loss of 0.29 percent.
Among the few European gainers was Belgium's BEL 20 (^BFX), which advanced 9.65 points to 4,214.22, up 0.23 percent.
The MSCI EUROPE Index (^125904-USD-STRD) slipped 7.31 points to 1,996.93, a 0.36 percent decline.
ASIA
In Asia, Hong Kong's HANG SENG INDEX (^HSI) gave up 31.81 points, ending at 19,720.70, down 0.16 percent.
China's SSE Composite Index (000001.SS) edged lower by 1.96 points, closing at 3,368.07, off by 0.06 percent.
In Japan the Nikkei 225 (^N225) ended the day at 38,701.90 after losing 111.68 points, a 0.29 percent drop.
Singapore's STI Index (^STI) dropped 42.95 points to 3,719.93, a slide of 1.14 percent.
In India the S&P BSE SENSEX (^BSESN) experienced a sharper fall, losing 1,176.45 points to close at 78,041.59, down 1.49 percent.
South Korea's KOSPI Composite Index (^KS11) tumbled 31.78 points to 2,404.15, off by 1.30 percent, while Taiwan's TWSE Index (^TWII) dropped 422.00 points to 22,510.25, a decline of 1.84 percent.
In Malaysia the FTSE Bursa Malaysia KLCI (^KLSE) slipped 8.68 points to 1,591.41, down 0.54 percent.
On a more positive note, Indonesia's IDX COMPOSITE (^JKSE) rose by 6.63 points, closing at 6,983.87, up 0.09 percent.
OCEANIA
In Australia the S&P/ASX 200 (^AXJO) dipped 101.20 points to finish at 8,067.00, 1.24 percent lower, while the Australian ALL ORDINARIES (^AORD) declined 98.30 points to 8,316.70, off by 1.17 percent.
New Zealand's S&P/NZX 50 Index Gross (^NZ50) also posted a solid gain of 149.96 points to 12,904.11, advancing 1.18 percent.
MIDDLE EAST
Most Middle East markets were closed on Friday and will reopen on Sunday.
AFRICA
South Africa's Top 40 USD Net TRI Index (^JN0U.JO) in Johannesburg added a modest 0.28 points to end at 4,435.58, a gain of 0.01 percent.
Outlook:
Friday's broadly negative close caps a week of cautious trading as investors grapple with a range of uncertainties, including corporate earnings growth, inflation trajectories, and geopolitical tensions. While a few indices managed to buck the trend, the prevailing sentiment remained subdued.
Photo credit: Big News Network news agency
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