> **Market Summary**
Stocks exhibited a fluctuating start on Friday but generally trended upward during the trading day. After oscillating through the initial session, the major indexes solidified their gains, moving into positive territory.
Currently, the benchmarks are just below their session peaks. The Dow Jones Industrial Average has risen by 112.51 points or 0.3%, reaching 40,675.57. The Nasdaq Composite is up by 65.38 points, or 0.4%, attaining 17,659.88, while the S&P 500 has increased by 14.40 points or 0.3% to 5,557.62.
The upward momentum seen in recent sessions persisted, contributing to today's gains. Notably, the Nasdaq and the S&P 500 are climbing for the seventh straight session, effectively recovering the substantial losses from earlier this week.
**Fed Rate Expectations and Economic Data**
Investor confidence has also been buoyed by recent data, which suggests a more optimistic economic outlook, thereby increasing expectations for an upcoming Federal Reserve interest rate cut. Although an upbeat retail sales report has lessened the chances of a 50 basis point cut, a 25 basis point reduction is still widely anticipated.
In economic news, preliminary figures from the University of Michigan reveal a larger-than-expected improvement in U.S. consumer sentiment for August. The index rose to 67.8 from July's 66.4, exceeding predictions of a slight increase to 66.9. The consumer sentiment index has rebounded from its lowest point since November 2023 recorded last month.
On the inflation front, the report indicated that year-ahead and long-term inflation expectations held steady at 2.9% and 3.0%, respectively.
**Housing Market Update**
In contrast, the housing market showed signs of weakening. The Commerce Department reported a significant decline in new residential construction for July. Housing starts plummeted by 6.8% to an annual rate of 1.238 million, down from June's revised rate of 1.329 million. Expectations had estimated a smaller decline to an annual rate of 1.330 million.
Building permits also saw a sharp drop, decreasing by 7.0% to an annual rate of 1.396 million in July, compared to June’s revised rate of 1.454 million. This figure was also below economists' forecasts, which anticipated a decrease to an annual rate of 1.430 million.
**Sector and Market Performance**
Despite the broader market's gains, most major sectors are seeing only modest movement. One standout is the gold sector, which has experienced a 2.2% surge in the NYSE Arca Gold Bugs Index, buoyed by a sharp rise in gold prices. Gold for December delivery has spiked by $39.90, reaching $2,532.30 per ounce.
Financial and computer hardware stocks have also trended positively, while airline stocks continue to show weakness.
**Global Markets and Bond Market Updates**
In international markets, Asia-Pacific stocks posted strong gains on Friday. Japan's Nikkei 225 Index soared by 3.6%, and Hong Kong's Hang Seng Index increased by 1.9%.
European markets delivered a mixed performance. The UK's FTSE 100 Index fell by 0.4%, whereas France's CAC 40 Index rose by 0.4% and Germany's DAX Index advanced by 0.8%.
In the bond market, treasuries are recovering from Thursday's decline. The yield on the benchmark ten-year note, which moves inversely to its price, is down by 3.6 basis points, currently at 3.890%.
