On Wall Street, US stocks surged, Friday, to add to the prior US session’s biggest daily percentage gains for the S&P 500 and Nasdaq in more than 2-1/2 years after year-over-year inflation in October fell below 8% for the first time in eight months.
The S&P 500 closed out its best week since June as a report on Thursday showing slowing inflation raised hopes that the Federal Reserve would soon slow its tightening campaign. The Dow Jones Industrial Average rose 0.1%, the S&P 500 gained 0.92% and the Nasdaq Composite advanced 1.88%.
MSCI’s all-country world index rose 1.91%, lifting it to its highest levels since mid-September, as the market repriced expectations for the Fed’s target rate to peak below 5%, or about 20 basis points lower than recent highs.
Market bets that the Fed will raise rates by 50 basis points in December increased, while the probability of a 75 basis points hike decreased.
The broader market index added 0.9%, to close at 3,992.93. This brought its gain for the week to 5.9%, its best week since the one ended June 24 of this year. The Nasdaq Composite added about 1.9% to end at 11,323.33 as investors snapped up tech shares on hopes interest rates would ease. The Dow Jones Industrial Average gained 0.1%, closing at 33,747.86.
Tech stocks on Friday shook off a decline in cryptocurrencies. Virtual currencies tumbled sharply this week and once again came under pressure Friday after FTX filed for bankruptcy protection, and CEO Sam Bankman-Fried resigned. Bitcoin and ether both declined.
Tags Dow Jones FED Nasdaq S&P 500 tech stocks US shares
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