S&P 500 Notches Fresh Record Ahead of PCE Data: Markets Wrap

(Bloomberg) — US stocks rose as traders await bigger clues about the health of the economy after upbeat data on Thursday.

The S&P 500 climbed 0.4% to its 42nd closing record of this year. The Nasdaq 100 ended the session 0.7% higher, after jumping as much as 1.5% earlier. The Bloomberg Dollar Spot Index declined. The 10-year US Treasury yield advanced to around 3.79%.

Markets were ebullient earlier after data highlighted a resilient US economy and China pledged to support fiscal spending. US stock indexes were also propelled higher by Micron Technology Inc., which gave a strong forecast aided by AI demand. 

On the other hand, news of the US Justice Department’s probe of Super Micro Computer Inc. — also a beneficiary of the AI boom — pushed its shares lower. After the closing bell, Costco Wholesale Corp. posted higher-than-expected profit.

Now, traders are waiting for the next batch of catalysts that could give them hints about the economy and the Federal Reserve’s path ahead. Those include the US central bank’s preferred inflation indicator and a snapshot of consumer demand releasing Friday.

“We think there is the potential that economic data will be more resilient, especially on jobs, than the market is expecting,” said Peter Tchir, head of macro strategy at Academy Securities. 

Earlier, revised data showed the US economy emerged from the pandemic in better shape than initially expected. A decline in US jobless claims underscored the resilience of the labor market. But investors tuning into commentary from Fed Chair Jerome Powell on Thursday didn’t get any details on the economic outlook or path for monetary policy.

Elsewhere, the Swiss National Bank cut borrowing costs by a quarter point at a third straight meeting. Mexico also cut interest rates, joining easing steps by Hungary and the Czech Republic earlier this week. 

Among commodities, oil slid for the second day as Saudi Arabia was reportedly committed to increasing output in December, while Libya named its new central bank governor, opening the way to reviving some crude production.

Key events this week: 

• China industrial profits, Friday
• Eurozone consumer confidence, Friday
• US PCE, University of Michigan consumer sentiment, Friday

Some of the main moves in markets: 

Stocks

• The S&P 500 rose 0.4% as of 4:02 p.m. New York time
• The Nasdaq 100 rose 0.7%
• The Dow Jones Industrial Average rose 0.6%
• The MSCI World Index rose 0.7%

Currencies

• The Bloomberg Dollar Spot Index fell 0.4%
• The euro rose 0.4% to $1.1178
• The British pound rose 0.7% to $1.3415
• The Japanese yen was little changed at 144.71 per dollar

Cryptocurrencies

• Bitcoin rose 2.2% to $64,870.28
• Ether rose 2.9% to $2,655.06

Bonds

• The yield on 10-year Treasuries was little changed at 3.79%
• Germany’s 10-year yield was little changed at 2.18%
• Britain’s 10-year yield advanced two basis points to 4.01%

Commodities

• West Texas Intermediate crude fell 3.4% to $67.32 a barrel
• Spot gold rose 0.6% to $2,673.48 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sujata Rao, Alex Nicholson and Margaryta Kirakosian.

©2024 Bloomberg L.P.