Wall Street shares rose in volatile trading on Friday as investors considered the recent storm of corporate earnings updates and reassessed the prospects of rising US interest rates.
The S&P 500 was up 1.9% in New York by the afternoon, while the tech-heavy Nasdaq Composite was up 1.7%.
those movements paper The Wall Street Journal has suggested that Federal Reserve rate-setters may adjust the pace of rate hikes starting in December. The US central bank has significantly increased borrowing costs by 0.75% at each of its last three meetings, raising the target range to 3-3.25%.
The market on Friday priced in expectations for US interest rates to rise to just under 4.9% by May 2023, down from Thursday’s forecast of 5.02%.
Investors have also been scouring companies’ latest financial statements during the ongoing earnings season, looking for signs of tension due to high inflation, rising borrowing costs and difficult economic conditions.
Shares of Snap fell 30% after the makers of camera and messaging app Snapchat made the announcement late Thursday. Revenue growth slowed And the loss ballooned in the third quarter.
Snap says advertisers continue to cut marketing budgets due to macroeconomic headwinds. Shares of Facebook-owned Meta and Twitter also fell by more than 2% and 4%, respectively.
Europe’s Stox 600 stock gauge fell 0.6% on Friday. Adidas had one of the biggest losses in the region, with the sportswear group’s German-listed shares subsequently falling 9.5%. sounded the alarm Second surplus after 3 months.
Shares of rival Puma fell more than 7%, and shares of JD Sports Fashion fell more than 6%.
In the Treasury market, US Treasurys, which had been under pressure in the first half of the session, stabilized. His benchmark 10-year Treasury yield yielded him flat at 4.22%.
Comparable bond yields in the UK rose 0.16 points to 4.06% as markets dealt with uncertainty over the government’s borrowing plans after Prime Minister Liz Truss stepped down. When bond prices fall, bond yields rise.
Friday’s data also showed UK retail sales fell more than expected in September, raising concerns the country is headed for recession.
Data from the Office for National Statistics showed that the volume of goods purchased in the UK fell by 1.4% between August and September, following a sharp decline in the previous month. Economists polled by Reuters had expected a contraction of 0.5%.
German bund prices also fell, with the 10-year bund yield rising 0.02 points to 2.42%.
In currencies, the dollar held back its gains early in the session, trading 0.6% lower against a basket of peers, but the pound also reversed course, gaining 0.3% against the dollar at $1.126.Japanese yen fell to 151.94 against the dollar after breaking through 150 in the previous session First time since 1990.
after yen shot higher It reaches 146.23 yen, usually during quieter times for the currency. Traders and analysts said the surge showed signs of official buys by policy makers.
Additional report by Hudson Lockett in Hong Kong
https://www.ft.com/content/b1d642e2-29d5-402f-b3f9-cab9facffba5 Wall Street stocks rise as investors assess prospects of rising interest rates