Singapore, April 30 (BNA): US stocks rose to a higher close on Friday and Treasury yields fell at the end of a strong earnings week, ending a strong month with data confirming that inflation is beginning to ease, which could allow US Treasury yields to decline. The Fed will pause after the interest rate hike next week.
All three major US stock indexes advanced, but a decline in Amazon.com shares capped Nasdaq’s gains, Reuters reported.
Every index posted weekly gains, and while the S&P 500 and Dow ended the month higher, the tech-laden Nasdaq was basically unchanged from its March 31 close.
“It’s the final day of a fairly strong month, along with the realization that this earnings season continues to be impressive,” said Ryan Detrick, chief market strategist at Carson Group in Omaha. “I’ve seen some really big companies turn in amazing profits, pushing back the narrative that we’re heading straight for a recession.”
That narrative made for a rocky start to the session after Amazon.com Inc warned of a possible slowdown, echoing weaker-than-expected GDP data on Thursday.
But economic data released before the bell confirmed that inflation was declining but still well above the Fed’s average annual target of 2%, and did little to move the needle on market expectations of another 25 basis point rate hike when the Bank meets. central next week.
“Core PCE came out as expected and shows that inflation is coming back to the floor,” Detrick added. “This potentially opens the door to another rate hike next week and the Fed can stop the strong tightening we have seen since last March.”
The Dow Jones Industrial Average rose 272 points, or 0.8 percent, to 34,098.16, the Standard & Poor’s rose 34.13 points, or 0.83 percent, to 4,169.48 points, and the Nasdaq Composite Index rose 84.35 points, or 0.69 percent, to 12,226.58 points.
European stocks posted a rebound late in the session, closing the books in April with a monthly advance of 1.9%.
The pan-European STOXX 600 index rose 0.56% and the MSCI measure of equities around the world rose 0.66%. Emerging market stocks rose 0.50%.
MSCI’s broadest index of Asia-Pacific stocks outside Japan closed up 0.52%, while Japan’s Nikkei was up 1.40%.
Treasury yields fell amid signs of slowing inflation.
The benchmark 10-year note recently rose 24/32 in price to 3.4371% from 3.528% late Thursday.
The 30-year bond price last rose 47/32 to 3.6733% from 3.756% late Thursday.
The dollar advanced against a basket of global currencies in the wake of inflation data, and benefited from a weaker yen after the Bank of Japan maintained its interest rate low.
The dollar index rose 0.13%, with the euro slipping 0.08% to $1.1018.
The Japanese yen fell 1.66% against the dollar at 136.24 per dollar, while the British pound was last traded at $1.2565, up 0.62% on the day.
Oil prices jumped after data showed slowing US crude production and boosting demand for fuel.
US crude jumped 2.70%, to settle at $76.78 a barrel, while Brent crude settled at $79.54 a barrel, up 1.49% during the day.
Gold prices were nominal as Treasury yields fell and concerns about US banking turmoil persisted.
Spot gold rose 0.05% to $1,988.75 an ounce.