Major US stock indexes rallied significantly on Friday, ending a four-day negative trend. This was mainly due to a rise in shares of regional banks that had previously posted declines, as well as the strong performance of shares of Apple Inc., which closed up 4.41% on Friday.
The Dow Jones Industrial Average rose 1.65%, or 546.64 points, to end the day at 33,674.38 points. Meanwhile, the S&P 500 gained 1.85% to close at 4,136.25 points, and the Nasdaq Composite was up 2.25% to finish the day at 12,235.41 points.
However, Friday’s gains in the S&P 500 and the Dow weren’t enough to offset the losses incurred during the week. The result was the most significant weekly drop since March 10, with the S&P 500 and Dow down 0.8% and 1.2%, respectively. The Nasdaq Composite, on the other hand, posted a minimal weekly gain of 0.1%. These results are based on preliminary closure data from FactSet.
In April, the US job market beat expectations adding 253,000 new jobs, topping the Dow Jones forecast of 180,000.
In an interview with the Economic Club of Minnesota, St. Louis Federal Reserve Chairman James Bullard expressed his optimistic views on the possibility of a recession in the United States. He joked about exaggerating forecasts of the economy’s decline and downplaying the risk of a recession. Bullard’s basic assumption for the US economy is one of slow growth, a weaker job market, and a declining labor market, which he called the soft landing scenario.
Earlier in the day, after PacWest’s shares fell significantly more than 50%, the decline was driven by news that the California bank was exploring strategic alternatives, including a potential sale, according to a source who said. Familiar with the situation, as reported by CNBC. This development has led to a sharp decline in the shares of regional banks.
This week, the Federal Reserve and the European Central Bank raised rates by 25 basis points, raising fears that tightening financial conditions could send significant economies into recession. China, the world’s largest importer of crude oil, saw a sudden drop in manufacturing activity as global demand weakened. In addition, Russian crude oil exports exceeded 4 million barrels a day despite promises to cut production.
This has led to speculation that Russia may have increased oil exports to boost profits in w, which faces Western sanctions. Apple’s balance sheet figures were released Thursday after the official stock market closed. Shares jumped by 3% in after-hours trading after releasing better-than-expected quarterly results.
This caused Nasdaq 100 futures to edge slightly on Friday morning after a lackluster performance during regular trading hours. Fiscal second-quarter financials revealed that earnings per share were unchanged at $1.52 from the same period a year earlier, while revenue decreased 2.5 percent to $94.84 billion.
However, the top and bottom lines beat expectations, with iPhone sales growth playing a significant role. As a result, Apple increased its quarterly dividend by 4.3% to 24 cents per share. Meanwhile, in Asian markets, China’s Caixin general services PMI fell from 57.8 in March to 56.4 in April 2023. Despite this decline, services activity expanded by a quarter consecutive month as the economy recovered from Covid-19.
While new orders increased slower, employment grew, albeit at the lowest rate in three months. However, input price increases rose to their highest level last year, driving up costs.
Price lists for Friday, May 5, 2023
DOW Jones +1.65% to 33,674.38
S&P 500 +1.85% to 4,136.25
NASDAQ 100 +2.25% to 12,235.41
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