Wall Street bounces higher ahead of long weekend
Dow set to snap five-week win streak
Workday falls after cutting revenue forecast
Ross Stores rises after Q1 results beat
Indexes up: Dow 0.18%, S&P 0.77%, Nasdaq 1.21%
Updated at 2:10 p.m. ET/1810 GMT
By Chuck Mikolajczak
NEW YORK, May 24 (Reuters) - U.S. stocks rose on Friday, recovering some losses suffered in the prior session as data showed improving consumer sentiment on inflation, to put the Nasdaq and S&P 500 on track for a fifth straight weekly gain.
However, the Dow .DJI was set to snap its five-week rally a day after registering its largest daily percentage decline in over a year.
The Nasdaq jumped more than 1% on the day.
The Commerce Department said new orders for key U.S.-manufactured capital goods rebounded more than expected in April while the University of Michigan reported that consumers' inflation expectations improved in late May after deteriorating early in the month.
"The data has come in a little better than people thought this morning. Durable goods was a pretty solid number. ... And then consumer sentiment, not great, but not bad, better than people expected," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.
"This is a bounce where people are like maybe things aren't as bad as we thought, maybe there's room for the Fed to cut rates and the economy's going to be OK, and we're not completely falling apart."
The Dow Jones Industrial Average .DJI rose 72.07 points, or 0.18%, to 39,137.33, the S&P 500 .SPX gained 40.81 points, or 0.77%, at 5,308.65 and the Nasdaq Composite .IXIC climbed202.76 points, or 1.21%, to 16,938.79.
Trading volumes were subdued ahead of the Memorial Day market holiday on Monday.
U.S. stocks dropped on Thursdayas economic data indicating rising price pressures tempered expectationsfor interest-rate cuts this year from the Federal Reserve. This overshadowed Nvidia'sNVDA.O blowout quarterly results that helped justify investor expectations for growth in artificial intelligence related stocks.
Communication services .SPLRCLgained 1.43% as the day's best performing of the 11 major S&P sectors, while tech .SPLRCT, consumer discretionary .SPLRCD and utilities .SPLRCU each gained around 1%.
Markets are pricing in a 49.4% chance for a rate cut at its September meeting, down from 54.8% a week ago, CME's FedWatch Tool showed.Goldman Sachs pushed back its call for a first easingto September from July.
Small-cap stocks, sensitive to interest rates, also rebounded, with the Russell 2000 .RUT rising 0.96% after tumbling 1.6% on Thursday.
Workday WDAY.O fell14.93% after the human resources software provider cut its annual subscription revenue forecast.
Ross Stores ROST.O rallied8.5% after posting first-quarter results above estimates and raising its annual profit forecast.
With earnings season largely wrapped up, LSEG data through Friday morning showed that of the 480 companies in the S&P 500 that have reported earnings, 77.9% have topped analysts' expectations, just shy of the 79% beat rate over the past four quarters but above the 67% average since 1994.
Advancing issues outnumbered decliners by a 3.01-to-1 ratio on the NYSE and by a 1.77-to-1 ratio on the Nasdaq.
The S&P index recorded 27 new 52-week highs and five new lows, while the Nasdaq Composite recorded58 new highs and 101 newlows.
Inflation expectations of US consumers https://reut.rs/4atSUuY
Reporting by Chuck Mikolajczak; Editing by Richard Chang
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
