05.12.202514:39:02UTC+00US Stocks Rise, PCE Eyed

On Friday, U.S. stock markets exhibited upward momentum, with the S&P 500 increasing by 0.3%, the Nasdaq climbing by 0.5%, and the Dow Jones Industrial Average advancing approximately 80 points. Investors are keenly anticipating the postponed release of the Personal Consumption Expenditures (PCE) report, which encompasses the Federal Reserve's favored measure of inflation. However, it is anticipated that this data will not significantly alter the expectations for the Federal Reserve's upcoming policy decision. The markets have currently factored in about an 87% likelihood of another interest rate cut by the Federal Reserve, which has bolstered market sentiment. The technology and communication services sectors emerged as the leading performers, while the financial and industrial sectors underperformed. Among the large-capitalization stocks, most saw increases, including Microsoft (up 0.3%), Amazon (up 0.7%), Alphabet (up 1.3%), Meta Platforms (up 0.7%), Broadcom (up 2.7%), and Tesla (up 0.4%), whereas Nvidia showed minimal change and Apple saw a decline of 0.4%. Meanwhile, Netflix's shares decreased by approximately 2.5% following their announcement of a deal to acquire Warner Bros. Discovery. For the week, the S&P 500 has appreciated by 0.1%, poised to mark its first consecutive weekly gain since October. The Nasdaq has experienced a 0.6% increase, and the Dow Jones has risen by 0.3% week-to-date.