(Bloomberg) — U.S. stocks regained some of their gains as traders weighed economic data and company news.
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The S&P 500 and Nasdaq 100 rose, but are still far from their day’s highs. The dollar has fallen. The yield on the 10-year US Treasury note rose to around 3.79%.
Markets were buoyed early as data highlighted the resilience of the U.S. economy and China’s top leader pledged to support fiscal spending. U.S. stock indexes were also boosted by Micron Technology Inc., which posted a strong outlook supported by demand for AI. Meanwhile, news of a Justice Department investigation into Super Microcomputer, which is also benefiting from the AI boom, pushed down the company’s stock.
Traders are now waiting for data that could provide greater clues about the health of the U.S. economy and the Federal Reserve’s future direction. The U.S. central bank’s recommended price index and snapshot of consumer demand released on Friday will show just that.
“We think economic indicators, particularly on employment, may show more resilience than the market expects,” said Peter Chill, head of macro strategy at Academy Securities.
Earlier, revised data showed the US economy emerged from the pandemic in better shape than initially expected. The decline in U.S. unemployment claims underscores the resilience of the labor market. But investors awaiting comments from Federal Reserve Chairman Jerome Powell on Thursday received no details about the economic outlook or the path of monetary policy.
China’s suspicions
A raft of policies launched by the Chinese government this week have significantly strengthened local assets, as China’s top leaders launched efforts to revive growth on Thursday. The CSI 300 index is on track for its biggest weekly gain in nearly a decade.
However, questions remain about the long-term impact of this measure.
“I wouldn’t be surprised if we see some pullback tomorrow,” Helen Jewell, chief investment officer at BlackRock Fundamental Equities EMEA, told Bloomberg TV. “This is what’s happening in the market right now. One day it’s risk-on, the next day it’s risk-off. China’s economy remains very fragile.”
swiss cut
Elsewhere, the Swiss National Bank cut borrowing costs by a quarter of a percentage point for the third consecutive meeting and warned that it would take further steps if necessary to contain the strength of the franc.
story continues
In commodity markets, oil fell for the second day in a row as Saudi Arabia reportedly worked to increase production in December and Libya appointed a new central bank governor, paving the way for a partial recovery in oil production. did.
This week’s main events:
ECB President Christine Lagarde speaks on Thursday
China’s industrial profits Friday
Eurozone consumer confidence, Friday
US PCE, University of Michigan Consumer Psychology, Friday
The main movements in the market are:
stock
As of 2:29 p.m. New York time, the S&P 500 was up 0.4%.
Nasdaq 100 rose 0.7%
The Dow Jones Industrial Average rose 0.7%.
MSCI World Index rose 0.7%
currency
The Bloomberg Dollar Spot Index fell 0.4%.
The euro rose 0.4% to $1.1178.
The British pound rose 0.7% to $1.3417.
The Japanese yen remained almost unchanged at 144.72 yen to the dollar.
cryptocurrency
Bitcoin rises 2.6% to $65,126.2
Ether rose 2.1% to $2,635.68
bond
The 10-year government bond yield was almost unchanged at 3.79%.
German 10-year bond yield remains unchanged at 2.18%
The UK 10-year bond yield rose 2 basis points to 4.01%.
merchandise
West Texas Intermediate crude oil fell 3.1% to $67.54 a barrel.
Spot gold rose 0.7% to $2,674.78 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With contributions from Margarita Kirakosyan, Winnie Hsu, Divya Patil, Richard Henderson, Ben Preichenfried, James Hirai, Sujata Rao, Alex Nicholson, and Denitsa Tsekova.
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