Positive End to the Week for Wall Street
Wall Street’s stock market ended the turbulent week on a positive note, as investors welcomed new inflation data in the US.
The Dow Jones Industrial Average, a blue-chip index, closed up 650 points or 1.6%, driven by a 20% surge in 3M’s industrial giant stocks. The broad S&P 500 index rose by 1%, while the tech-heavy Nasdaq Composite climbed by 0.8%.
Friday’s Market Movements
Friday’s market movements were driven by a combination of a stronger-than-expected GDP report on Thursday and the belief that the Federal Reserve will begin to lower interest rates due to economic stability, commented Sam Stovall of CFRA Research on CNBC.
“Today’s favorable report on the Personal Consumption Expenditures Price Index (PCE) helped the market pull back from the edge,” he added. “With this pullback, the large rotation continues.”
Investors continued to focus on the cyclical sectors of the market and companies with small market capitalization.
Stock Market Update: Technology Sector Sees Growth
The stock market saw positive gains this week, with the Russell 2000 index rising by approximately 2%. Industrial and raw material companies also saw an increase in stock prices, boosting the respective sectors of the S&P by 1.7%.
Tech Companies Rebound
Some technology companies that struggled during the week saw growth on Friday, with Microsoft and Amazon stocks both increasing by over 1%. Meta Platforms’ stock price also rose by nearly 3%. Overall, the information technology sector within the S&P index saw a 1% increase.
Market Analysis
Investors are also analyzing the Consumer Price Index (CPI) as a measure of personal consumption expenditures. This data will provide further insights into the current economic landscape and help investors make informed decisions moving forward.
Positive Inflation Data Boosts Investor Confidence
In June, the preferred inflation gauge by the Federal Reserve in the US showed positive signs. On a monthly basis, the main index increased by 0.1% and by 2.5% compared to the previous year. These encouraging inflation news strengthened investors’ hopes for further interest rate cuts this year.
Market Performance
Last week was volatile for Wall Street – the S&P 500 declined by 0.8%, while the Nasdaq erased 2.1%. However, the Dow managed to record a growth of 0.8% for the week.
Bond Yields
Yields on US government bonds decreased on Friday, with the yield on the 10-year Treasury note falling by 6 basis points to 4.193%.
American Crude Oil Prices Drop by Over 1%
American crude oil prices dropped by more than 1% on Friday and marked a third consecutive weekly decline, as concerns over demand in China overshadowed strong economic growth in the US. West Texas Intermediate fell by 3.7% this week, while the European Brent crude decreased by 1.8%.
Gold Prices Increase by 1%
Gold prices increased by 1% on Friday to $2388.05 per ounce, after reaching its lowest value since July 9th on Thursday. Gold futures in the US with delivery in August settled at a price of $2381 per ounce after a 1.2% increase.
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