A trader works on the trading floor of the New York Stock Exchange (NYSE) on January 26, 2023 in New York City.
Andrew Kelly | Reuters
Stock futures fell slightly on Friday morning as Wall Street tried to round off a successful week for markets with better-than-expected economic growth and a rebound from market darling Tesla.
S&P 500 futures lost 0.26%, while Nasdaq 100 futures fell 0.4%. Futures linked to the Dow Jones Industrial Average traded flat.
Earnings season continued, with intel Plunge more than 9% premarket after a dismal earnings report that missed on both the top and bottom. Strong leadership strengthened American Express despite a top and bottom line miss.
Stocks rose during regular trading on Thursday, hailing a better-than-expected fourth-quarter gross domestic product report that spurred hopes the US economy may enjoy a soft landing as the Federal Reserve hikes interest rates to tame inflation .
The Dow Jones Industrial Average gained more than 205 points, or 0.61%, for its fifth straight session of gains, the first streak of this length since October. The S&P 500 rose 1.10% and the tech-heavy Nasdaq Composite rose 1.76%.
All three indices are positive for the week and month. The Dow and S&P 500 are up 1.7% and 2.2% respectively this week. The Nasdaq is up 3.3% this week and is expected to post its best monthly performance since July. The Nasdaq has risen over the past four weeks.
“This year’s stock market rally is impressive and shouldn’t be ignored,” said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance it said in a Thursday note. “Unfortunately, the Fed is likely to start downplaying the market again as early as next week, so brace yourself for volatility again this year; We may be in the eye of the hurricane and not quite out of the woods yet.”
The personal consumption spending index, a favorite measure of inflation by the Federal Reserve, released Friday showed a 4.4% rise in prices from a year earlier, the Commerce Department said. That was in line with the Dow Jones estimate.
This is some of the latest data to be released ahead of next week’s Fed interest rate decision. Investors are currently expecting a 25 basis point hike from the central bank.
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