U.S. Stocks Move Mostly Higher, S&P 500 Reaches New Record Intraday High
Stocks have moved mostly higher during trading on Friday, extending the upward move seen in the previous session. With the advance on the day, the S&P 500 has reached a new record intraday high.
Currently, the major averages are all in positive territory, although the Nasdaq is underperforming its counterparts. While the Nasdaq is up 11.63 points or 0.1 percent at 14,381.34, the Dow is up 224.73 points or 0.7 percent at 34,421.55 and the S&P 500 is up 12.74 points or 0.3 percent at 4,279.23.
Stocks = continue to benefit from the upward momentum seen throughout most of the week, which has helped lift the Nasdaq and S&P 500 to new record highs.
While the Federal Reserve’s forecast for rate hikes in 2023 weighed on the markets last week, traders seem to be coming to terms with the fact that tighter monetary policy is not imminent.
The Fed is likely to begin tapering its asset purchase program in the not-too-distant future, but the program will continue to support the markets until that time.
A report from the Commerce Department showing the annual rate of core consumer price growth in May matched economist estimates has added to the sentiment.
The reading on inflation said to be preferred by the Fed showed the annual rate of core consumer price growth accelerated to 3.4 percent in May from 3.1 percent in April.
The Commerce Department also said personal income slumped by 2.0 percent in May after plunging by 13.1 percent in April. Economists had expected personal income to tumble by 2.5 percent.
The continued decrease in personal income in May primarily reflected a drop in government social benefits, as stimulus payments continued but at a lower level.
Meanwhile, the report showed personal spending was virtually unchanged in May after climbing by 0.9 percent in April. Personal spending was expected to rise by 0.4 percent.
Banking stocks have shown a strong move to the upside on the day, driving the KBW Bank Index up by 1.3 percent.
Networking, brokerage and computer hardware stocks are also seeing some strength, while airline stocks have moved notably lower.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index rose by 0.7 percent, while China’s Shanghai Composite Index surged up by 1.2 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index is up by 0.4 percent, the French CAC 40 Index and the German DAX Index are both down by 0.1 percent.
In the bond market, treasuries have come under pressure after ending the previous session roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.4 basis points at 1.521 percent.
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