Positive End To The Week – US Market Wrap

Stocks rose after data showed American consumers tempered inflation expectations, bolstering sentiment regarding prospects for Federal Reserve rate-cuts this year.

The S&P 500 rebounded after a two-day slide. When traders come back from the holiday weekend, the “T+1” rule will come into effect, making US equities settle in one day rather than two. Treasuries barely budged after Fed Governor Christopher Waller said he still thinks the neutral interest rate is relatively low, while warning that unsustainable fiscal spending could alter that trend.

Wall Street received some relief when University of Michigan statistics indicated that consumers expect prices to rise at a 3.3% annual rate over the next year, down from 3.5% earlier in the month.

In a low-volume session, the S&P 500 surpassed 5,300, wiping out this week’s losses. The Nasdaq 100 reached a new high, boosted by increases at NVIDIA and Apple. Crypto stocks rose after the Securities and Exchange Commission cleared the door for the eventual launch of the first US exchange-traded funds that invest directly in Ethereum.

US 10-year yields fell one basis point to 4.47%, with the bond market closing early ahead of the Memorial Day holiday. The dollar halted a four-day winning run. The yen was little changed as Japan’s top currency official reiterated his stance to take steps against excessive moves. Oil and gold edged up.