From Nasdaq: 2024-05-03 18:09:26

US stock indexes closed higher on Friday, with the S&P 500, Dow Jones, and Nasdaq all recording gains. Apple’s strong earnings pushed the tech giant’s stock up more than 6%. Weaker-than-expected US economic reports raised confidence in a potential Fed interest rate cut. However, hawkish comments from Fed Governor Bowman tempered some optimism.

Corporate earnings results were mixed, with Apple and Amgen gaining on strong reports, while Expedia and Fortinet saw losses. Q1 earnings have generally exceeded expectations, with a +4.7% increase expected. However, concerns about stagflation remain due to disappointing economic indicators, such as the contraction in the ISM services index and rising inflation.

In the US, April nonfarm payrolls rose by +175,000, falling short of expectations. We saw an unexpected increase in the unemployment rate to 3.9%, as wage growth also missed projections. The Apr ISM services index dropped more than expected, pointing to a contraction in the service sector. This data, combined with dovish Fed signals, could indicate a future rate cut.

Interest rates on the 10-year T-notes fell to a 3-week low on Friday as bond yields declined. European government bond yields also moved lower. Overseas, stock markets ended mixed. Notable stock movers included Apple, Amgen, and Expedia. Homebuilders rallied on the news of falling yields. It’s important to monitor these economic factors as they impact the overall market sentiment and performance.



Read more at Nasdaq: Stocks Close Higher as the Outlook Improves for Fed Rate Cuts