The S&P 500 index is set to achieve its first gain since Christmas, with a 1.1% increase in afternoon trading on Friday. This comes after a challenging week of losses, the longest losing streak since April.
The recovery in the market is largely attributed to the performance of major tech stocks, particularly Nvidia, which surged 4.5%. Despite concerns about inflated valuations in the tech sector, Nvidia's rise is notable. Super Micro Computer, a company specializing in AI server production, also experienced a significant increase. Analysts suggest that while the initial gains in AI may have plateaued, there is potential for further growth.
Tesla rebounded with a 5% increase, recovering from a previous drop. Rivian, a competitor in the electric vehicle market, saw a remarkable 22% jump in its stock price. U.S. Steel faced a decline following President Joe Biden's decision to block an acquisition deal proposed by Japan's Nippon Steel. The beverage sector faced pressure after concerns were raised about the link between alcohol consumption and cancer risk.
The overall economic landscape remains stable, with the U.S. economy continuing to grow amid high interest rates. The Federal Reserve's efforts to combat inflation have brought rates down significantly. However, traders are adjusting their expectations regarding future interest rate cuts.
The global market is also feeling the effects of these economic dynamics. In China, stock prices tumbled, while Hong Kong's market managed a slight recovery. European stock indexes also faced declines. South Korea's Kospi index rose after government assurances aimed at stabilizing the economy.
In the bond market, Treasury yields remained relatively stable following a report indicating that U.S. manufacturing is not as weak as previously feared. The 10-year Treasury yield edged up, while the two-year yield rose. These movements in the bond market reflect ongoing adjustments to economic indicators and the Fed's monetary policy stance.
Investors remain vigilant, weighing the implications of economic data against the backdrop of geopolitical developments and corporate performance.