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Strong US stocks continue after early rally

Stocks surged early in the session and continue to perform strongly in trading on Friday afternoon. In the rally of the day, the key average is expanding the uptrend seen in the previous two sessions.

Currently, the major averages are hovering near the highest levels of the day. The Dow rose 354.40 points (1.1%) to 32,991.59, the Nasdaq rose 296.90 points (2.5%) to 12,037.55, and the S & P 500 rose 71.43 points (1.8%) to 4,129.27.

Wall Street’s continued strength follows the release of a Commerce Department report in April showing a slowdown in the pace of key consumer price increases.

Inflation readings, said to be favored by the Federal Reserve Board, showed that the annual rate of increase in core consumer prices fell from 5.2% in March to 4.9% in April.

This data contributes to the optimism that the Fed will slow the pace of monetary tightening in the second half of the year.

Inflation measures were included in a report showing a slightly lower increase in US personal income than expected in April.

The report showed that personal income rose 0.5% in March and then 0.4% in April. Economists expected an additional 0.5% increase.

Meanwhile, the Commerce Department said personal consumption rose 0.9% in April after a 1.4% surge, which was revised upwards in March.

Private consumption was expected to increase by 0.7% compared to the 1.1% surge initially reported last month.

Traders have largely ignored another report from the University of Michigan, showing that US consumer sentiment was even worse than previously estimated in May.

The report showed that the May consumer confidence index was revised downward from a preliminary reading of 59.1 to 58.4. Economists expected the index not to be revised.

The consumer confidence index has fallen further below 65.2 in April to its lowest level since reaching 55.8 in August 2011.

Sector news

Computer hardware inventories have expanded the rebounds seen in the previous two sessions, raising the NYSE Arca computer hardware index by 3.5%.

Dell Technologies (DELL) has helped lead the sector after reporting that first-quarter results exceeded analysts’ expectations and exceeded earnings.

There is also considerable strength among semiconductor stocks, as reflected in the 3.2% surge from the Philadelphia Semiconductor Index.

The airline’s stock price also rose sharply that day, with the NYSE Arca Aviation Index rising 3.1%.

Commercial real estate, networking and biotechnology stocks are also showing considerable strength and are rising alongside most other major sectors.

Other markets

In overseas transactions, stocks market During the trading on Friday, the entire Asia Pacific region rose almost. Japan’s Nikkei 225 index rose 0.7% and Hong Kong’s Hang Seng index rose 2.9%.

On that day, major European markets also started to rise. The UK’s FTSE 100 index rose 0.3%, while the German DAX index and the French CAC 40 index both rose 1.6%.

In the bond market, government bonds saw their initial strength and retreated near the unchanging line. Since then, yields on benchmark 10-year bonds, which move in the opposite direction of prices, have fallen by 2.749% below the basis point.

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Strong US stocks continue after early rally

Source link Strong US stocks continue after early rally

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