Stocks rose 1% as Fed Chair Powell hinted at rate cuts and positive corporate news

From Barchart: 2024-08-23 18:20:23

US stock market indices, including the S&P 500, Dow Jones, and Nasdaq, closed up around +1% on Friday. Comments from Fed Chair Powell on potential interest rate cuts at the September FOMC meeting boosted stocks. Positive corporate news, like Workday’s strong performance, also contributed to the rally. Bond yields fell, supporting gains in chip stocks and home builders.

In Europe, stock markets settled higher on Friday, with gains in key indices like Euro Stoxx 50, Shanghai Composite, and Nikkei Stock 225. Lower government bond yields were observed in Germany and the UK. Inflation expectations in the Eurozone remained stable or even strengthened, leading to discussions about easing monetary policy by the ECB.

Stock movers in the US included chip stocks like Nvidia and Marvell Technology closing up more than +4%. Home building stocks saw gains after a better-than-expected US July new home sales report. Cruise line operators also rallied, with Carnival and Norwegian Cruise Line Holdings closing up more than +7%. Workday led gainers in the Nasdaq 100 after a strong Q2 report.

In earnings reports, Critical Metals Corp and HEICO Corp are set to announce earnings on 8/26/2024. Intuit closed down more than -6% after a lower-than-expected Q1 adjusted EPS forecast. Las Vegas Sands dropped more than -1% after a downgrade, while Bill Holdings fell more than -7% after forecasting adjusted EPS below consensus. Moderna saw gains after receiving approval in the EU for its RSV vaccine.



Read more at Barchart: Stocks Close Higher as Fed Chair Powell Signals Rate Cuts