Tesla and Amazon were among the Nasdaq’s top gainers, while Intel fell after reporting disappointing earnings.
Wall Street has opened higher in the last two trading days, aiming to end the week on a positive note and recover from the previous week’s slump. The Wall Street main index opened higher on Friday morning trading hours amid expectations of a more dovish Fed interest rate hike.
The S&P 500 increased by 0.38 percent, the Nasdaq rose by 0.88 percent, and the Dow Jones indexes jumped by 0.30 percent.
The BPD growth rate increased by 2.9% by the end of the fourth quarter, which was considered a good spot to end the year. Economists believed that the U.S. growth rate in 2022 had a bit of momentum. The data delivered by the Commerce Department shows that despite the market turmoil, the U.S. economy is slowly growing.
As for Friday’s data, U.S. consumer spending declined in December and January amid fears of a market recession.
The given data shows easing inflation, and investors hope that the aggressive interest hike series will end by February 1.
The Federal Reserve will take this week’s data into consideration during its monetary policymaking process.
Meanwhile, the stock market reaction was mixed, waving between gains and losses. The S&P 500’s fourth-quarter earnings data show that nearly 69% of the index outperformed market expectations.
Tesla shares jumped by 10% in today’s trading hours; Amazon shares rose by 2,86%; and Alphabet shares jumped by 1,61%. These stocks were among the top gainers in Friday’s trading session.
Intek failed and fell by 7.5%; the company’s stocks crashed after a disappointing fourth-quarter earnings report.
According to an official at chipmaker Intel, the company may face further declines in the future. Consumers are not interested anymore in personal computers, and their spending behavior is changing, which represents a big challenge to the company.
Other market reactions include a 1.5% increase in 10-year Treasury yields to 3,531 and a 0.32 percent increase in 30-year Treasury bonds.
Oil prices The West Texas Intermediate fell to $79 per barrel on Friday, while Brent oil is currently trading at a market price of $85 per barrel.
According to Forex, the US dollar rose by 0.1%, causing the Euro to fall by 0.09 percent; if the dollar continues on its current upward trend, it is more likely to reach the nine-month high reached on Monday.
Investors hope for a quarter-interest hike in February; however, the FED official might have another essay on the topic. Whereas inflation data would boost the probability of easing interest hikes, the jobless claims data might have interrupted the process.
According to experts, jobless claims in the United States remain low and far below pre-pandemic levels. The U.S. labor market is recovering but at a slower pace.
That said, it’s uncertain how much the Federal Reserve will raise interest rates. But in terms of the market’s future outlook, the market started 2023 in a good spot.