Stocks close higher to cap final full trading week of 2022

US stocks were higher on Friday to post gains across the board, closing out the final trading week of 2022.

As the closing bell rang on Wall Street, the S&P 500 (^GSPC) was up 0.6%, the Dow Jones Industrial Average (^DJI) was up 0.5%, while the Nasdaq Composite (^IXIC) was tech-heavy. It gained 0.2%.

The US stock and bond markets will be closed on Monday, December 26 for the Christmas holiday.

With Friday’s move, the S&P 500 and Dow managed to pare losses for the week, while the Nasdaq fell around 1.5%. Still, markets are on pace to end the worst year for equity markets since 2008 as the trading year ends on Friday, December 30.

Oil prices rose on Friday, heading for a weekly high as investors expected Russian crude supplies to taper.

A barrel of WTI crude oil rose by 2.77 percent to 79.64 dollars on Friday. For the week, WTI gained more than 6 percent after falling for the year earlier this month.

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U.S. Treasury yields edged higher, while the U.S. dollar index retreated against a basket of currencies.

The flow of economic data has been significant this week, and Friday was no exception.

The PCE price index – the Fed’s preferred measure of inflation – showed on Friday morning that prices rose 5.5% from November and 0.1% from the previous month, according to consensus estimates of economists polled by Bloomberg. have been investigated. This figure represents a moderation from readings of 6.1% and 0.3% for annual and monthly inflation, respectively, in October.

Core PCE, which strips out volatile food and energy items, rose 4.7% year-on-year and 0.2% on a monthly basis.

Meanwhile, personal spending stagnated in November and was the weakest print since July.

“The Federal Reserve’s preferred measure of inflation continues to fall, which is good news for their most important target, but unfortunately for the market, it also happens as consumers continue to cut back on spending,” the Alliance’s Independent Advisor Investment capital. Officer Chris Zaccarelli said in a statement.

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Elsewhere in economic data, US consumer sentiment on the economy improved in December. The University of Michigan said on Friday that its consumer sentiment index rose to 59.7 this month from 56.8 in November, up slightly from the previous month’s average reading of 59.1. And new home sales increased in November compared to the previous month, up 5.8% from October.

NEW YORK, NEW YORK - DECEMBER 21: People walk in front of the New York Stock Exchange during midday trading on December 21, 2022 in New York City.  Stocks closed strongly for the second day in a row today with the Dow Jones closing up more than 500 points amid a better-than-better report on consumer confidence from the Conference Board.  (Photo by Michael M. Santiago/Getty Images)

NEW YORK – CHANNEL 21: People walk in front of the New York Stock Exchange during midday trading. (Photo by Michael M. Santiago/Getty Images)

After the Fed’s final 2022 policy decision last week, strategists noted that the most surprising data point among officials’ economic forecasts was an upward revision to their baseline PCE expectations of 3.5%. 3.1% before the end of 2023. This suggested that many analysts of the Federal Reserve will need to keep rates at a higher level until 2023.

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“We expect the Fed to revise its forecasts in March, although progress will be slow at first; policymakers seem wary of the experience of the past year and a half, and will want to be sure. those numbers are not slowing down quickly,” Pantheon Macroeconomics Chief Economist Ian Shepherdson said in a note. “The market will not wait.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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