May 10 2024: U.S. stocks saw modest gains on Friday, with expectations of monetary easing and strong earnings driving positive sentiment.
By 09:35 ET (13:35 GMT), the Dow Jones Industrial Average had risen by 80 points, or 0.2%, the S&P 500 was up by 13 points, or 0.3%, and the NASDAQ Composite had climbed 40 points, or 0.2%.
This performance puts the major indexes on track to record weekly gains ranging between 1% and 2%.
Investors are optimistic about potential rate cuts by the U.S. Federal Reserve later this year, especially after recent labor market data pointed to a cooling trend. Fed Chair Jerome Powell’s remarks have hinted at a shift towards rate cuts, with traders now pricing in a nearly 50% chance of a rate cut in September according to the CME Fedwatch tool.
Despite concerns about sticky inflation, the focus is on next week’s consumer price index inflation reading, expected to moderate but likely to remain above the Fed’s target.
Several central bank officials, including Fed presidents Lorie Logan, Neel Kashkari, and Austan Goolsbee, are scheduled to speak on Friday.
Positive sentiment has been buoyed by a strong earnings season, with over 80% of S&P 500 companies reporting better-than-expected first-quarter results. Notable corporate earnings on Friday include Akamai Technologies and Unity Software. Novavax also surged after signing a deal with Sanofi for Covid vaccine development.
In the energy sector, crude prices rose, aiming for around 2% weekly gains following higher demand signals from both the U.S. and China, the world’s largest crude consumers.
