U.S. stocks close out their 8th straight winning week
U.S. stocks closed their eighth straight winning week, with the S&P 500, Dow Jones, and Nasdaq rising despite record-low consumer sentiment and inflation concerns. Companies like Ross Stores, Estee Lauder, and Workday surged after beating earnings expectations, while oil price volatility and rising bond yields added uncertainty to the market outlook.
U.S. stocks ended their eighth consecutive winning week on Friday, with the S&P 500 gaining 0.4 percent, the Dow Jones Industrial Average rising 294 points (0.6 percent), and the Nasdaq composite climbing 0.2 percent. The market’s rally came despite a University of Michigan survey showing U.S. consumer sentiment hit a record low, driven by fears of persistent inflation and rising oil prices linked to tensions in the Strait of Hormuz. Retailer Ross Stores led gains with an 8.1 percent jump after reporting quarterly profits and revenue that exceeded analyst forecasts. CEO Jim Conroy attributed the results to strong customer traffic, possibly boosted by tax refund spending. Estee Lauder surged 11.9 percent after abandoning plans for a potential merger with Puig, while Workday and Zoom Communications rose 5.2 percent and 9.2 percent, respectively, following better-than-expected earnings reports. The streak of strong corporate earnings has kept U.S. stocks near record highs, as stock prices typically align with long-term profit trends. However, consumer sentiment remains fragile, with households forecasting inflation to worsen to 4.8 percent over the next year and 3.9 percent in the long term—up from previous estimates. Lower-income consumers and Republicans showed the steepest declines in optimism, according to the survey. Oil prices fluctuated again Friday, influenced by uncertainty over a potential U.S.-Iran deal to reopen the Strait of Hormuz. Brent crude settled at $100.21 per barrel after an earlier decline, reflecting ongoing geopolitical risks. Rising bond yields, now near 4.56 percent for the 10-year Treasury, have pushed mortgage rates to their highest levels since last summer and could dampen investment in AI data centers. Federal Reserve Governor Christopher Waller’s remarks on Friday reinforced market expectations that interest rate cuts are unlikely this year, as inflation concerns persist. Traders have abandoned bets on rate reductions, leaving economic growth and stock valuations under pressure from elevated borrowing costs.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.