Stocks exhibited a general upward trajectory on Friday, as major U.S. stock indices managed gains following a previously mixed session. The Nasdaq, characterized by its technology-heavy composition, notably surged to achieve a new record high during trading hours.
As of now, the major indices have tempered slightly off their session peaks. Specifically, the Nasdaq has risen by 246.24 points, marking a 1.3% increase to 18,661.73. Meanwhile, the S&P 500 has gained 44.48 points, or 0.8%, reaching 5,854.34, and the Dow has increased by 127.13 points, or 0.3%, at 42,501.49.
The positive momentum on Wall Street is partly driven by sustained optimism regarding the U.S. economy's future outlook, despite lingering apprehensions over the Federal Reserve's pace in reducing interest rates, which might be slower than initially expected.
Current widespread expectations are for the Fed to reduce rates by a quarter-point in the coming month. However, the CME Group's FedWatch Tool suggests there is a 24.0% probability that the central bank may maintain the status quo regarding rates in December.
Contributing to the optimistic economic sentiment, revised data from the University of Michigan indicated an unforeseen improvement in consumer sentiment for October. The University's consumer sentiment index has been adjusted upward to 70.5 from a preliminary figure of 68.9, surpassing economists' anticipated slight adjustment to 69.0.
This revision places the consumer sentiment index marginally above September's final figure of 70.1. Marking its third consecutive monthly rise, the index now stands at its highest since April's level of 77.2.
Conversely, a report by the Commerce Department highlighted a greater-than-expected decline in new orders for U.S. manufactured durable goods in September, driven by persistent declines in transportation equipment orders. Durable goods orders dropped by 0.8% in September, mirroring a revised decrease for August, while economists had forecasted a 0.5% decline compared to the original unchanged report. Excluding a 3.1% drop in transportation equipment orders, durable goods saw a 0.4% uptick in September, following a 0.6% rise in August, contrary to expectations of a slight 0.1% dip.
**Sector Analysis**
Airline stocks made a significant recovery after Thursday's sharp drop, with the NYSE Arca Airline Index soaring by 3.0%. Additionally, the semiconductor and computer hardware sectors displayed marked robust performance, propelling the Nasdaq's upward momentum.
The crude oil price increase further bolstered oil service stocks, evident from the 1.9% surge in the Philadelphia Oil Service Index. Other sectors such as software, steel, and networking also demonstrated notable strength, although gold stocks dipped slightly, undermined by a modest rise in gold's price.
**Global Markets**
International market trends exhibited variability across the Asia-Pacific region on Friday, with Japan's Nikkei 225 Index declining by 0.6%, opposed by a 0.6% rise in China's Shanghai Composite Index.
European markets reflected a narrow mixed outlook, highlighted by a 0.1% increase in Germany's DAX Index. Conversely, the U.K.'s FTSE 100 Index hovered just below its previous level, and France's CAC 40 Index decreased by 0.2%.
In the bond market, treasuries displayed a lack of clear direction throughout the session. Presently, the benchmark ten-year note yield, inversely correlated to its price, shows a marginal increase of less than a basis point at 4.210%.
