After a notable rally on Thursday, the stock market showed a more subdued performance on Friday, although it managed to close mostly higher.
Major indexes finished off their intraday peaks but remained in positive territory. The Dow increased by 51.05 points or 0.1% to 39,497.54, the Nasdaq rose 85.28 points or 0.5% to 16,745.30, and the S&P 500 gained 24.85 points or 0.5% to 5,344.16.
This higher close came as stocks continued to bounce back from recent declines driven by concerns about the U.S. economic outlook.
The Nasdaq and the S&P 500 managed to offset the steep losses seen on Monday, ending the week only slightly down. For the week, the S&P 500 was down less than 0.1%, while the Nasdaq dipped 0.2%. The Dow saw a larger decline, down 0.6%.
Despite these gains, major averages remain well below recent highs after sharp declines last Thursday and Friday.
Traders seemed cautious, likely holding off on significant moves due to a lack of major U.S. economic data, ahead of several key reports expected next week.
Next week's spotlight will likely be on key inflation data, alongside reports on retail sales and industrial production, which could influence trading given the current economic concerns.
Among individual stocks, Expedia (EXPE) surged after reporting better-than-expected second-quarter results. Likewise, Akamai Technologies (AKAM) showed notable strength following strong second-quarter results and raised full-year guidance. Conversely, e.l.f. Beauty (ELF) shares fell, despite surpassing fiscal first-quarter expectations.
Sector Developments
Pharmaceutical stocks led the charge, with the NYSE Arca Pharmaceutical Index rising by 1.8%. Gold stocks also showed strength, as the NYSE Arca Gold Bugs Index climbed 1.1%, driven by a modest increase in gold prices. Gains were also seen in software and brokerage stocks, while most other sectors saw only modest changes.
Global Markets
In Asia-Pacific markets, stocks mostly rose on Friday. Japan's Nikkei 225 Index increased by 0.6%, and Hong Kong's Hang Seng Index jumped 1.2%. Major European markets also moved higher; Germany's DAX Index edged up by 0.2%, while the U.K.'s FTSE 100 Index and France's CAC 40 Index each rose by 0.3%.
In the bond market, treasuries rebounded after a downward trend in previous sessions. The yield on the benchmark ten-year note, which moves inversely to its price, fell 5.5 basis points to 3.942%.
Looking Ahead
Next week's trading will likely be influenced by the reaction to U.S. economic data, and investors are expected to closely monitor the latest corporate earnings results, including those from Walmart (WMT) and Home Depot (HD).
