U.S. stock markets closed higher on Friday as falling treasury yields gave a boost to high-flying technology growth stocks. Moreover, the confidence of market participants was boosted by a better-than-expected consumer sentiment data released by the University of Michigan. All the three major stock indexes closed the day in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 13.36 points, closing at 34,479.60, continuing its two-day winning streak. Notably, 17 components of the 30-stock index ended in green while 12 finished the day in red and 1 remained unchanged.
The tech-heavy Nasdaq Composite closed the day at 14,069.42, up 0.4%, maintaining its gains from Thursday, on the back of strong performance by large-cap technology stocks. The S&P 500 rose 0.2%, closing the day at 4,247.44, a fresh record high and continuing its gains from Thursday’s session. The Financials Select Sector SPDR (XLF) and the Technology Select Sector SPDR (XLK) gained 0.6% and 0.6%, respectively. Notably, eight out of eleven sectors of the benchmark index closed in the positive zone and three in red.
The fear-gauge CBOE Volatility Index (VIX) was down 2.8% to 15.65. A total of 9.11 billion shares were traded on Friday, lower than the last 20-session average of 10.56 billion. Advancers outnumbered decliners on the NYSE by a 1.83-to-1 ratio. On Nasdaq, a 1.70-to-1 ratio favored advancing issues.
Technology Shares Led Wall Street Rally
Wall Street was led higher by high-flying technology growth stocks in Friday’s session as the 10-year Treasury yield fell below 1.4%, registering a three-month low. Notably, shares of technology companies like Zoom Video Communications, Inc. ZM, DocuSign, Inc. DOCU and NVIDIA Corporation NVDA rose 5.7%, 4.1% and 2.3%, respectively. Notably, both Zoom and NVIDIA carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Meanwhile, investors are looking forward to the U.S. Federal Reserve’s two-day policy meet this week for any clue regarding the Fed’s plans of raising interest rates going forward.
The confidence of market participants was also boosted after the University of Michigan reported that the preliminary reading of its consumer sentiment index rose to 86.4 in June, surpassing the consensus estimate of 84.6, and higher than the reading of 82.9 reported in May. The sub-index of current economic conditions rose to 90.6 in June from 89.4 in May. Meanwhile, the sub-index of consumer expectations rose to 83.8 in June compared to 78.8 reported in May.
U.S. stock markets saw major indexes closing mostly higher during the week as the Nasdaq Composite posted its fourth consecutive winning week, gaining 1.9%, while the S&P 500 rose 0.4%, gaining for the third successive week. However, the Dow lost 0.8% during the week. The gains during the week came despite the inflation surging 5% in May, compared to a year earlier, as market participants remained hopeful of the U.S. Federal Reserve’s assessment that the inflation is transitory.
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