The Dow Jones closed up 400 points on Friday to a record close, while the S&P closed above 5,800 points for the first time. The broad index rose 0.7%, with the Dow gaining 440 points, or 1%. For the S&P 500, the index is up 1.2&. In addition, the Nasdaq Composite added 0.45% upon closing hours. US Stocks enjoyed a fruitful Friday heading into the holiday weekend.
Craig Sterling, head of U.S. equity research at Amundi US, suggests that the rise indicates a broadening of the markets. “What we’re seeing — and I think you’re seeing it hit pretty hard today, in a good way — is a broadening of the market.” With Q3 underway, markets are resoundingly strong. For individual top companies: JPMorgan Chase rose 4.4% after topping profit and revenue expectations, while Wells Fargo helped 5.6% on stronger-than-expected profits. Tesla, on the other hand, had a notable fall off, sinking more than 7% Friday after a disappointing Robotaxi event on Thursday.
New Data Fuels Fruitful Friday For US Stocks
Furthermore, stocks also rose following new data that proved inflation is cooling off. The September producer price index was lower than expected following a higher consumer price index (CPI). The data is in line with the Federal Reserve’s expectations of a soft inflation landing at 2%, which may support another rate cut at the next Fed meeting.
“Overall, these numbers are getting less impactful as inflation moderates,” said David Russell, global head of market strategy at TradeStation. “The Fed could still be on track for 25 basis points at the next two meetings.”
The numbers are also good coming off of recent weather factors that could’ve affected US stocks, according to some experts. Jim Reid, head of global economics and thematic research at Deutsche Bank, said he expects weather factors to bleed into market prices over the next few weeks. “We are in for a period of data heavily influenced by recent storms and strikes,” he said. “So this will likely make it a complicated few weeks for markets and the Fed.”