Wall Street Holds Near Record as Winning Streak Continues/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street remained near record levels Friday as the S&P 500 hovered after hitting an all-time high. Positive earnings reports and a steady bond market helped offset slight declines in the Dow. Highlights include Verizon’s 2.5% rise after surpassing earnings expectations and Novo Nordisk’s 9.7% surge following promising trial results. Global markets were mixed, with gains in Asia and minor declines in Europe.
Wall Street Near Record: Quick Looks
- Market Overview: S&P 500 steady, Nasdaq slightly up, Dow down 0.2%.
- Earnings Boost: Companies like Verizon exceeded expectations, supporting the market.
- Bond Market Stability: 10-year Treasury yield steady at 4.65%.
- Sector Highlights: Novo Nordisk jumped 9.7%; Texas Instruments dropped 6.2%.
- Global Markets: Asia sees gains; Tokyo declines after Japan raises interest rates.
Wall Street Holds Near Record as Winning Streak Continues
Deep Look
NEW YORK — Wall Street is holding steady near record highs as the S&P 500 remains virtually unchanged on Friday. The index set an all-time high on Thursday and is poised to close out its second straight winning week. Early trading showed the Dow Jones Industrial Average down by 70 points (0.2%), while the Nasdaq composite edged up by 0.1%.
Market Drivers: Steady Bonds and Strong Earnings
The bond market, which has significantly influenced recent market trends, remained relatively calm. Treasury yields, particularly the 10-year yield, held steady at 4.65%, helping stabilize stock prices. Rising bond yields earlier this year had weighed on equities due to concerns over inflation and government debt. However, a positive inflation update last week has eased worries and contributed to recent stock market gains.
Corporate earnings have also played a key role in keeping markets buoyant. With strong reports from several major companies, investors are seeing a promising start to the 2025 earnings season.
Brian Jacobsen, chief economist at Annex Wealth Management, noted, “If 2024 was the year of the election, 2025 is the year of earnings. Earnings have been improving, but how long can that last?”
Key Stock Movers
- Verizon Communications: Shares rose 2.5% after the company reported better-than-expected quarterly results, thanks partly to recent price increases.
- Novo Nordisk: U.S.-listed shares surged 9.7% following positive clinical trial results for a weight-loss treatment, further boosting investor confidence in the company.
- Texas Instruments: Despite reporting higher-than-expected profits, the tech giant’s stock fell 6.2%. Analysts focused on weaker margins, reflecting the pressure to sustain profitability.
- CSX Corporation: The railroad company saw its stock dip 2.8% as revenue slightly missed forecasts, impacted by hurricanes during the last quarter of 2024.
Global Market Trends
International markets delivered mixed results:
- Asia: Hong Kong’s Hang Seng index climbed 1.9%, while Shanghai’s stock market rose 0.7%. Tokyo’s Nikkei 225 fell slightly by 0.1% after the Bank of Japan raised its benchmark interest rate to 0.5%, marking the highest level since 2008.
- Europe: Stock markets across Europe displayed mild fluctuations, reflecting caution amid ongoing global economic uncertainties.
The Bank of Japan’s interest rate hike signaled the end of its prolonged period of ultra-low rates designed to encourage borrowing and spending. This shift is closely watched as other central banks navigate inflation concerns and monetary tightening policies.
Broader Implications
The U.S. market’s recent strength is underpinned by optimism about corporate earnings and signs of inflation moderation. However, analysts warn that sustaining the current momentum may require consistent growth in corporate profits, especially in an environment of rising interest rates and cautious consumer spending.
Jacobsen emphasized the importance of earnings in driving the market: “While companies have delivered so far, the key question is how much further they can grow their bottom lines.”
With global markets reflecting mixed sentiment and central banks making critical moves, the trajectory of Wall Street will likely depend on continued economic stability and corporate performance in the weeks ahead.
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