After several consecutive days of growth, stocks delivered a relatively undistinguished performance during Friday’s trading. The major averages fluctuated throughout the day, culminating in a mixed ending.While the Nasdaq incrementally increased by 26.98 points or 0.2 percent to reach a new record closing high of 16,428.82, the S&P 500 marginally declined by 7.35 points or 0.1 percent to 5,234.18, and the Dow markedly slid 305.47 points or 0.8 percent to 39,475.90.Despite mixed results on the day, the major averages all significantly increased over the week, with a 2.9 percent spike in the Nasdaq, a 2.3 percent surge in the S&P 500, and a 2.0 percent increase in the Dow. In the early trading, some traders sold off stocks to capitalize on the recent market gains, contributing to modest weaknesses.Selling pressure was relatively under control, as traders continued to express optimism about interest rates’ outlook following the Federal Reserve’s monetary policy announcement earlier in the week. While the timing of the first-rate remains uncertain, the odds of a quarter-point rate cut in June have bounced back to 66.5 percent, as suggested by the CME Group’s FedWatch Tool.Chipmaker Nvidia (NVDA) drove a rebound by the tech-heavy Nasdaq, with a notable increase of 3.1 percent. The company, a leading player in AI, set a new record high closing price. FedEx (FDX) shares also significantly increased by 7.4 percent following the announcement of better-than-expected fiscal third-quarter results and a new $5 billion share repurchase program.However, Lululemon (LULU) shares dramatically declined by 15.9 percent despite reporting better than expected fiscal fourth quarter results, due to their disappointing guidance. Nike (NKE) shares also dropped by 6.9 percent following the announcement of exceeding fiscal third-quarter earnings and revenues estimates, but a slowing growth rate in China.Among sector news, most major sectors made only minor moves on the day, except for financial stocks, which saw significant weakness after two consecutive sessions of substantial growth. This weakness reflects in the NYSE Arca Broker/Dealer Index’s 1.7 percent slide and a 1.5 percent fall in the KBW Bank Index. The NYSE Arca North American Telecom Index also posted a 1.5 percent loss.In global market news, Asia-Pacific region stock markets delivered a mixed performance during Friday’s trading. While Japan’s Nikkei 225 Index slightly increased by 0.2 percent, China’s Shanghai Composite Index considerably declined by 1.0 percent, and Hong Kong’s Hang Seng Index dropped by 2.2 percent. Similarly, the major European markets also finished mixed. Despite the French CAC 40 Index’s 0.3 percent drop, the German DAX Index slightly rose by 0.2 percent, and the U.K.’s FTSE 100 Index increased by 0.6 percent.In the bond market, treasuries displayed strong growth after remaining largely unchanged in the previous session. As a result, the yield on the benchmark ten-year note, which inversely correlates with its price, dropped 5.3 basis points to 4.218 percent.Looking forward, next week’s trading might be influenced by reactions to reports on new home sales, durable goods orders, consumer confidence, and pending home sales. However, a report on personal income and spending, which includes Fed-preferred inflation readings, will be released on Good Friday when markets are closed.The material has been provided by InstaForex Company – www.instaforex.com
- Russia’s GDP Monthly Growth Slows to 4.2% in March 2024 - April 27, 2024
- Russia’s Unemployment Rate Drops Slightly to 2.7% in March 2024 - April 27, 2024
- Russian Real Wage Growth Surges to 10.8% in February 2024 - April 27, 2024