US Stocks Extend Gains For Fifth Day As Investors Expect Fed To Cut Rates
The S&P 500 rose 0.29% as of 9:40 am ET, while the Dow Jones Industrial Average and Nasdaq Composite rose by 0.27% and 0.37%, respectively.
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US stocks rose for the fifth consecutive day on Friday as traders held on to expectations of lower interest rates ahead of the Federal Reserve meeting next week. This comes on the back of economic data like Producer Price Index data and core inflation data.
The S&P 500 rose 0.29% as of 9:40 am ET, while the Dow Jones Industrial Average and Nasdaq Composite rose by 0.27% and 0.37%, respectively.
The stock markets are expected to remain in a sideways trend until US employment data indicates a definitive shift, either towards weakening or strengthening, Bloomberg reported quoting Michael Hartnett and his team at Bank of America Corp. as saying. They also told Bloomberg that various market factors are influencing both positive and negative outlooks.
"There are risks to the market if the Fed only goes 25, especially given the unlikely threshold of a “dovish cut” being met. So, a "how-the-market-would-respond” argument does not feel compelling. My own sense is that markets would welcome the move," Neil Dutta at Renaissance Macro Research told Bloomberg.
Among the notable market movers, shares of Adobe also fell over 9% on Friday as the fourth-quarter guidance missed analysts expectations. In a statement released Thursday, the company projected that its key measure for recurring revenue growth in its creative software segment will reach $550 million for the period ending in November.
Meanwhile, Boeing shares fell 2% as over 30,000 workers are poised to strike following a vote by the company’s factory employees in the US Pacific Northwest, who are demanding higher wages. This potential work stoppage poses additional difficulties for the aerospace giant.
US 10-year yields fell to 3.66% in the morning. Meanwhile, Brent crude oil prices climbed 1.28% At $72.89 per barrel.
Spot gold hit $2,572.98 an ounce on Friday, its highest ever. Investors have been flocking to gold amid growing expectations the Federal Reserve will embark on a rate-cutting cycle soon. The metal also is seen as a haven with ongoing geopolitical concerns from the Middle East, Russia’s war in Ukraine and the upcoming US presidential election.
