The S&P 500 and Nasdaq 100 climbed, brushing aside modest losses on Wall Street on Thursday.
US stocks rose in early trading as China’s latest move to support its economy instilled a note of optimism at the end of another volatile week for global markets.
The S&P 500 and Nasdaq 100 both rose, warding off modest losses on Wall Street on Thursday. Traders in the United States will be bracing for more volatility later on Friday due to the monthly expiration of options related to stocks and exchange-traded funds, which often cause the market to fluctuate.
In a week marked by rally buying and selling price action, sentiment strengthened on Friday after Chinese lenders cut the five-year prime loan rate by a record amount in the aim of boosting mortgages and lending amid a property slump and Covid lockdowns. Despite Friday’s gains, the S&P 500 is still heading for its seventh weekly decline that would mark the longest losing streak in more than two decades.
Treasuries were flat and the dollar was little changed. Oil hovered around $112 a barrel.
Rebounds in risk sentiment have tended to falter this year as investors grapple with worries about an economic slowdown, in part as the Federal Reserve raises interest rates to ease price pressures. Global equities are on track for a historic seventh week of declines.
The Stoxx Europe 600 erased the week’s losses. Travel stocks and automakers led the advance, rebounding from two days of declines. The UK equity benchmark outperformed and gilts fell slightly after a surprise rise in retail sales in April overshadowed a drop in consumer confidence to its lowest level in at least 48 years. .
In the latest developments regarding Russia’s war in Ukraine, the Senate passed a Ukraine aid package worth more than $40 billion, sending the bill to President Joe Biden for his signature. Meanwhile, the industrialized countries of the Group of Seven will agree on more than 18 billion euros ($19 billion) in aid to Ukraine, according to German Finance Minister Christian Lindner.
What damage will be done to the US economy and global markets before the Fed changes tack and eases policy again? The “Fed Put” is the theme of this week’s MLIV Pulse survey.
Some of the major movements in the markets:
- The S&P 500 rose 0.8% at 9:30 a.m. PT
- The Nasdaq 100 rose 1.2%
- The Dow Jones Industrial Average rose 0.5%
- The Stoxx Europe 600 rose 1.5%
- The MSCI World index rose 1.1%
- The Bloomberg Dollar Spot Index was little changed
- The euro fell 0.2% to $1.0563
- The British Pound rose 0.2% to $1.2487
- The Japanese yen fell 0.2% to 128.01 to the dollar
- The yield on 10-year Treasury bills rose two basis points to 2.86%
- The German 10-year rate rose two basis points to 0.97%
- The UK 10-year yield rose six basis points to 1.92%
- West Texas Intermediate Crude Little Changed
- Gold futures are little changed
–With help from April Ma, Tassia Sipahutar, Michael Msika, Brett Miller and Sunil Jagtiani.