As of 9:49 am ET, the Dow Jones Industrial Average showed a gain of 36.03 points, equivalent to a 0.09% increase, reaching 38,085.16. Meanwhile, the S&P 500 showed a marginal decrease of 3.32 points, representing a 0.07% decrease, with a current value of 4,890.84. Additionally, the Nasdaq Composite experienced a decrease of 32.89 points, reflecting a 0.21% decrease, and currently stands at 15,477.61.
The US Commerce Department’s report revealed that the personal consumption expenditure index, which is the Federal Reserve’s preferred metric to gauge inflation, experienced a moderate increase in December. This consistent moderation has resulted in the annual inflation rate remaining below 3% for the third consecutive month. This trend may give the central bank the opportunity to consider starting interest rate hikes within the year.
Putting pressure on the technology-centric Nasdaq, Intel witnessed a significant decline of 12.1%, reaching a six-week low. This decline was prompted by the company’s projection that its first-quarter revenue might miss estimates by more than $2 billion. Consequently, this led to declines ranging from 1.6% to 2.2% in other semiconductor stocks, such as Advanced Micro Devices, Qualcomm, and Micron Technology.
In the realm of stock market movements, American Express rose 7.1%, propelled by the credit card’s optimistic annual profit forecast. Conversely, its counterpart Visa (VN) experienced a 2.1% decline, attributed to the largest payment processor’s revenue growth projection for the current quarter, which overshadowed an otherwise positive earnings result.
According to LSEG data, a remarkable 78.2% of the S&P 500 companies that have reported their earnings so far have exceeded expectations. This stands out compared to the long-term average strike rate of 67%.
On the New York Stock Exchange (NYSE), advancers outnumbered decliners by a ratio of 2.25-to-1, while on the Nasdaq, the ratio was 1.75-to-1. The S&P index hit 26 new 52-week highs with no new lows, while the Nasdaq saw 48 new highs and 28 new lows. These statistics underline the dynamic and positive trends observed in the market.
On Thursday, the Dow Jones Industrial Average rose 81.36 points, or 0.22 percent, to 37,887.75, the S&P 500 rose 15.31 points, or 0.31 percent, to 4,883.86, and the Nasdaq Composite increased by 49.032 percent, or 0.31 percent. , at 15,531.21.
Meanwhile, the pan-European benchmark STOXX 600 rose 1.11% after the European Central Bank (ECB) kept interest rates steady.
Among Asian countries, China’s Shanghai Composite traded down 1.90 percent, while Hong Kong’s Hang Seng index fell 1.60 percent.
Oil prices remained steady on Friday but were on track for a second straight weekly increase, driven by encouraging US economic growth and signs of Chinese stimulus that boosted demand sentiment. Additionally, supply concerns in the Middle East contributed further support to the market.
Brent crude futures experienced a marginal decline of 9 cents, reaching $82.34 per barrel by 11:13 am ET (16:13 GMT). Despite this slight decline, it is worth noting that earlier in the day, they reached their highest price for the year, reaching an intraday peak of $82.80.
The stability of gold prices continued on Friday, with investors redirecting their focus to the upcoming US Federal Reserve policy meeting scheduled for next week in anticipation of gaining further insight into the interest rate outlook.
As of 9:58 am ET (1458 GMT), spot gold exhibited minimal movement, holding at $2,020.19 per ounce, reflecting a marginal decline of 0.5% for the week. At the same time, US gold futures experienced a slight increase of 0.1%, reaching $2,020.30.
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Published: 26 Jan 2024, 22:26 IST