Wall Street’s main indexes rallied by over 1% each on Friday due to an easing in Treasury yields and expectations about the upcoming inflation reports. Despite suffering sharp declines the day prior, investors remain optimistic about the future. All 11 S&P 500 sectors gained, embracing the noticeable increase with the technology sector leading the way.
Investors have been speculating on the benchmark Treasury yields and monitoring the monetary policy for any cues from the Fed. The long-awaited consumer price index report, due next week, determines future interest rate projections and how the market will respond. Economic data will continue to shape these expectations, driving the market reactions upwards or downwards.
Heavyweight tech and growth stocks presented gains on Friday, reassuring Wall Street that in light of the soaring Treasury yields and anticipated slowing economic growth, these companies would continue to perform well. Meanwhile, genetic testing company, Illumina, experienced a fall in share prices as it trimmed its full-year profit forecast for the second straight quarter. Given the high market expectations for the upcoming inflation data, investors were eager to position themselves favorably for the possible positive market results. The Dow Jones Industrial Average rose by 0.91% while the S&P 500 and the Nasdaq Composite increased by 1.33% and 1.83% respectively.
