HG MARKETS:

U.S. equities recovered on Friday after suffering severe losses the day before, helped by reports that consumers’ expectations for inflation are increasing. The Nasdaq reached a record closing high and gained for the sixth week in a row thanks to this rally. The Commerce Department revealed that new orders for important capital goods made in the United States increased in April, more than anticipated. Furthermore, the University of Michigan found that after declining earlier in the month, consumers’ expectations for inflation improved in late May. “This morning’s data exceeded expectations. Although not particularly positive, consumer sentiment was better than expected. Durable goods orders were also strong.This bounce suggests that things may not be as bad as feared, potentially allowing the Fed some room to cut rates, with the economy remaining stable. At 39,069.59, the Dow Jones Industrial Average increased by 4.33 points, or 0.01%. At 39,069 the Dow Jones Industrial Average increased by 4 points, or 0.01%. The Nasdaq Composite increased 184.75 points, or 1.10%, to 16,920.75 while the S&P 500 gained 37.00 points, or 0.70%, to 5,304.75. Even with Friday’s advances, the Dow concluded a five-week climb on Thursday, when it saw the biggest daily percentage loss in more than a year. The S&P 500 increased by 0.03%, the Nasdaq gained 1.41%, and the Dow fell by 2.34% for the week. Prior to Monday’s Memorial Day market holiday, trading volumes were muted. U.S. stocks dropped on Thursday as hopes for rate reduction from the Federal Reserve this year were dampened by economic data pointing to increasing pricing pressures. Nvidia’s strong quarterly earnings, which had raised investor hopes for growth in AI-related companies, were overshadowed by this. Out of the 11 major S&P sectors, communication services performed the best, rising 1.29%, while tech and utilities also had gains of about 1%. Based on the CME’s FedWatch Tool, markets are pricing in a 49.4% possibility of a rate drop at the Fed’s September meeting, down from 54.8% a week earlier. Additionally, Goldman Sachs revised its July to September prediction for the first easing. Interest rate-sensitive small-cap companies had a resurgence as well; the Russell 2000 increased by 1.04% following a 1.6% decline on Thursday. After the provider of HR software reduced its yearly subscription revenue prediction, Workday fell 15.33%. Ross Stores, on the other hand, increased 7.89% after reporting first-quarter earnings that beat forecasts and increased its projected year profit. As the earnings season draws to a close, LSEG data shows that 77.9% of the 480 S&P 500 companies that have released earnings have outperformed analysts’ projections. This is higher than the 67% average from 1994, but it is marginally lower than the 79% beat rate from theprevious four quarters. On the NYSE and the Nasdaq, advancing items were greater than declining ones by a ratio of 2.91 to 1 and 1.85 to 1, respectively. While the Nasdaq Composite had 68 new highs and 114 new lows, the S&P index saw 28 new 52-week highs and six new lows. 10.36 billion Shares were traded on US exchanges throughout the full day, which is lower than the 12.22 billion average over the previous 20 trading days.