After concluding Thursday’s session with marginal but contrasting results, the leading U.S. stock indexes delivered another mixed outcome on Friday. The Nasdaq, which is heavily weighted toward technology stocks, built on the previous day’s significant gains, while the Dow Jones Industrial Average continued its downward trend for the fifth consecutive session.At the outset of trading, the Nasdaq achieved a new record intraday high. However, it lost some ground throughout the day, ultimately closing with an increase of 103.12 points or 0.6%, settling at 18,518.61. Conversely, the Dow Jones slid by 259.96 points or 0.6% to finish at 42,114.40, retreating significantly from last Friday’s record closing peak. The S&P 500 also dipped slightly, losing 1.74 points or less than a tenth of a percent to close at 5,808.12.Over the week, the performance of the major averages was similarly uneven. The Dow plummeted by 2.7%, and the S&P 500 decreased by 1.0%, while the Nasdaq rose by 0.2%.Stocks initially climbed early in the session, propelled by sustained optimism regarding the economic outlook. Further bolstering confidence, the University of Michigan released revised data showing an unexpected improvement in consumer sentiment for October.The University of Michigan’s consumer sentiment index for October was revised upward to 70.5 from a preliminary estimate of 68.9, exceeding economists’ expectations of a slight upward revision to 69.0. This larger-than-expected revision positions the consumer sentiment index modestly above the final September figure of 70.1. It’s noteworthy that the index has increased for the third consecutive month, reaching its highest point since it peaked at 77.2 in April.Despite initial optimism, buying interest dwindled as the session progressed, with treasury yields rebounding following a previous decline. Persistent concerns lingered over the Federal Reserve potentially taking a more gradual approach to lowering interest rates than previously anticipated. While the Fed is still largely expected to reduce rates by a quarter point next month, the CME Group’s FedWatch Tool indicates a 24.0% probability that rates will remain unchanged in December.The Dow’s prolonged losing streak was influenced by substantial declines in shares of McDonald’s (MCD), Dow Inc. (DOW), and Travelers (TRV).**Sector Analysis**Airline stocks experienced a notable recovery after a sharp decline on Thursday, with the NYSE Arca Airline Index surging by 2.0%. A sharp rally in crude oil prices also bolstered oil service stocks, evident in the 1.3% rise of the Philadelphia Oil Service Index. Conversely, gold stocks faced pressure despite a modest increase in gold prices, resulting in the NYSE Arca Gold Bugs Index dropping by 2.1%. Stocks sensitive to interest rate fluctuations, such as utilities and housing, also showed significant weakness amid ongoing rate concerns.**Global Markets**Internationally, stock markets across the Asia-Pacific region produced mixed outcomes on Friday. Japan’s Nikkei 225 Index fell by 0.6%, while China’s Shanghai Composite Index rose by 0.6%. In Europe, major markets ended the day narrowly mixed. The German DAX Index nudged up by 0.1%, while the French CAC 40 Index edged down by 0.1%, and the U.K.’s FTSE 100 Index declined by 0.3%.In the bond market, treasuries declined throughout the session after a period of indecisive early trading. Subsequently, the yield on the benchmark ten-year note rose 3.2 basis points, reaching 4.232%.**Looking Ahead**Next week’s trading will likely be influenced by the upcoming monthly jobs report, alongside a key report on personal income and spending that includes the Federal Reserve’s preferred inflation metrics. Additionally, attention may turn to reports on consumer confidence, pending home sales, and manufacturing sector activity.Corporate earnings are also anticipated to be a focal point, with companies such as Alphabet (GOOGL), Amazon (AMZN), Exxon Mobil (XOM), Intel (INTC), McDonald’s (MCD), Meta Platforms (META), Microsoft (MSFT), and Pfizer (PFE) set to release their quarterly results.The material has been provided by InstaForex Company – www.instaforex.com
- Czech Republic’s Inflation Rebounds to 0.3% in October - November 11, 2024
- Czech Republic’s CPI Edges Up to 2.8% in October 2024 - November 11, 2024
- Lithuania’s Inflation Slows Down: CPI Growth Eases to 0.1% in October - November 11, 2024