Global equities notch third weekly gain; US yields up
Business
Global equities notch third weekly gain; US yields up
NEW YORK/LONDON (Reuters) - Global equities rose on Friday, with the S&P 500 crossing the 5,000-point milestone for the first time ever, as U.S. inflation data raised expectations of an interest rate cut this year, while closely watched U.S. Treasury yields rose.
The greenback reversed earlier gains, falling 0.06%.
Oil LCOc1 notched a gain for the week on worries over a broadening conflict in the Middle East after Israel rejected a ceasefire offer from Hamas.
The MSCI All Country stock index (.MIWD00000PUS), opens new tab climbed 0.4% to a third straight weekly gain.
The mood in stock markets was buoyed by Wall Street, where the S&P 500 index (.SPX), opens new tab rose above 5,000 points, helped by big gains in megacap stocks such as Nvidia (NVDA.O), opens new tab.
The chipmaker climbed to a record high after Reuters reported it was building a new business unit.
"The new closing high over 5,000 bodes well over the intermediate to longer term, with a key technical level being cleared today," Larry Tentarelli, Chief Technical Strategist with Blue Chip Daily Trend Report, in North Andover, Massachusetts.
"We believe that the combination of very strong corporate earnings, strong jobs data, strong GDP data and declining inflation are an excellent backdrop for equities going forward."
U.S. monthly consumer prices rose less than initially estimated in December, but underlying inflation remained a bit warm, data showed on Friday. The data revision did little to alter expectations for central bank rate changes.
U.S. inflation data for January is coming next week.
The Dow Jones Industrial Average (.DJI), opens new tab fell 54.64 points, or 0.14%, to 38,671.69, the S&P 500 (.SPX), opens new tab gained 28.70 points, or 0.57%, to 5,026.61 and the Nasdaq Composite (.IXIC), opens new tab gained 196.95 points, or 1.25%, to 15,990.66.
The yield on benchmark U.S. 10-year notes rose 0.7 basis points to 4.177%, from 4.17% late on Thursday.
[1/4]Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 6, 2024. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab
The 2-year note yield, which typically moves in step with interest rate expectations, rose 3.2 basis points to 4.4883%, from 4.456% late on Thursday.
Gold prices came under pressure from the stronger yields, with spot gold down 0.44% at $2,024.16 an ounce. U.S. gold futures settled 0.4% lower at $2038.7.
Brent crude futures settled up 0.7% at $82.19 a barrel, and U.S. crude futures finished up 0.8% at $76.84.
European shares ended slightly lower under pressure from rising yields and sliding L'Oreal shares.
The pan-European STOXX 600 index (.STOXX), opens new tab closed 0.1% lower, but still eked out a weekly advance of 0.2%.
