Wall Street has opened on a positive note, inching closer to its all-time high set two years ago. In early trading on Friday, the S&P 500 showed a 0.3% increase. The Dow Jones Industrial Average saw a rise of 107 points, while the Nasdaq composite recorded a 0.4% gain. For the second consecutive day, technology stocks led the market, driven by robust forecasts from heavyweight chipmaker Taiwan Semiconductor Manufacturing Co. Both Advanced Micro Devices and Nvidia experienced upward movement. Additionally, several companies witnessed a rally after reporting stronger-than-expected profits for the end of 2023. Treasury yields also showed an increase.
In breaking news, Wall Street continued its upward trajectory early on Friday as the markets aimed to recover from earlier losses in the week. This positive momentum follows the U.S. government’s successful avoidance of a potential partial shutdown. Futures for the Dow Jones Industrial Average and the S&P 500 both rose 0.6% before the market opened.
On Thursday, Congress passed a short-term spending bill, averting a partial government shutdown and providing funding for federal agencies until March. This marked the third stopgap funding measure in recent months, extending current spending levels and allowing time for the House and Senate to reconcile their differences over full-year spending bills.
The broader market showed stability as Treasury yields slowed their ascent from earlier in the week. Yields had been rising as traders adjusted their forecasts for when the Federal Reserve might begin cutting interest rates. The yield on the 10-year Treasury stabilized at 4.14% on Friday.
The Federal Reserve has indicated a potential multiple rate cuts in 2024, considering the cooling of inflation since its peak two summers ago. This suggests a looser grip on the economy and financial system.
Spirit Airlines experienced a significant surge of nearly 36% after pre-announcing strong fourth-quarter revenue and improved margins, driven by robust holiday travel.
In European midday trading, Britain’s FTSE 100 climbed 0.5%, Germany’s DAX rose 0.3%, and France’s CAC 40 remained virtually unchanged.
In Asia, Tokyo’s Nikkei 225 index rose 1.4% to 35,963.27. Japan’s inflation slowed for a second straight month, increasing the likelihood of the Bank of Japan maintaining its ultra-low interest rates at its upcoming meeting.
Hong Kong stocks were on track for their third consecutive week of losses, with the Hang Seng losing 0.5% to 15,368.69, and the Shanghai Composite index down nearly 0.5% at 2,832.28.
In South Korea, the Kospi added 1.3%, Australia’s S&P/ASX 200 advanced 1%, and Taiwan’s Taiex gained 2.6%, with Taiwan Semiconductor Manufacturing Co. adding 6.5%.
In energy trading, benchmark U.S. crude lost 30 cents to $73.65 a barrel, while Brent crude, the international standard, gave up 29 cents to $78.81 a barrel.
The U.S. dollar edged down to 148.04 Japanese yen from 148.15 yen, and the euro cost $1.0886, slightly up from $1.0874.
On Thursday, the S&P 500 rose 0.9% to 4,780.94, the Dow Jones Industrial Average gained 0.5% to 37,468.61, and the Nasdaq composite jumped 1.3% to 15,055.65.
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