U.S. Stock Market Closed Higher

U.S. Stock Market Closed Higher

On Friday, May 28, major indexes in the U.S. stock market closed marginally higher as investors accepted the Fed’s notion that inflation is transitory.

In the cash market, the benchmark S&P 500 Index, Dow Jones Industrial Average, and NASDAQ Composite all climbed at market close by 0.08% at 4204.11, 0.19% at 34529.45, and 0.09% at 13748.74, respectively.

Shares of Salesforce soared more than 5.00% on Friday which leads the gains in the Dow.

The rally happened following the software company’s first-quarter earnings that beat Wall Street’s expectations on its top and bottom lines.

Meanwhile, Boeing Co. plunges, succeeding the Federal Aviation Administration’s confirmation that the company halted the deliveries of its 787 Dreamliners.

This adds fresh delays for customers after five-month delivery cancellations due to problems in production.

On the other note, consumer prices jumped 0.70% in April which topped analysts’ forecast of 0.60% and after a 0.40% surge last March.

This was gauged by the personal consumption expenditures (PCE) price index which excludes the volatile food and energy constituent.

The core PCE price index tweaked 3.10% in the 12 months through April which smashed the Fed’s 2.00% goal.

This data is also higher compared to the analysts’ projection of 2.90% year-on-year.

Data shows that even if nearly 10 million Americans are officially unemployed, consumer spending struck 0.50% last month.

This accounts for more than two-thirds of the country’s economic activity.

While the data for March was altered higher to convey the improvement of spending by 4.70% instead of 4.20%.

However, personal income tumbled by 13.10% following the 20.90% surge in March.

World Market Wrap

Stocks in the world market stay near a record that is lifted by the continuing economic recovery from the COVID-19 pandemic as well as in the injection of stimulus.

European stocks grappled for grip along with the U.S. futures following indications that China’s economic recovery might level out.

The Stoxx Europe 600 index crashed at the open as Deutsche Bank AG rebounded after Fed’s warning that its agreement programs aren’t sufficient.

On Monday, contracts on NASDAQ 100 and S&P 500 boosted with confined trading hours due to the U.S.’ Memorial Day holiday.

Meanwhile, in Asia, Japanese stocks collapsed over concerns of an extended state of emergency against the coronavirus.

Consequently, shares in China and Hongkong also plummeted, wherein an indicator of the manufacturing industry proposed that the economy’s recovery momentum might have peaked.

Lastly, MSCI’s index of world stocks piled up by 0.1% higher which put the gauge on track for a gain of 1.4% for May.

However, due to the holidays in the U.S. and the U.K. on Monday, the trading was quiet on the U.S. futures and European cash equities.

  • Support
  • Platform
  • Spread
  • Trading Instrument
Comments Rating 0 (0 reviews)