- The Nasdaq Composite leapt in a broad rally sweeping Wall Street on Friday.
- Stocks pushed past downbeat retail sales and consumer confidence data.
- Federal Reserve officials are saying they plan to stick with monetary policy that fosters economic growth.
- See more stories on Insider’s business page.
Tech stocks led a broad-based rally on Friday, with investors driving the Nasdaq up by more than 2% as Federal Reserve officials said they will stay with monetary policies that support economic recovery, with more signs of such improvement arriving as the trading week wrapped up.
Wall Street’s benchmark indexes extended gains made Thursday that snapped a three-session losing streak. Apple, Tesla, and Facebook were among big tech names that advanced. All 11 sectors on the S&P 500 rose, led by the energy group.
Here’s where US indexes stood at 4 p.m. on Friday:
- S&P 500: 4,173.81, up 1.49%
- Dow Jones Industrial Average: 34,382.07, up 1.06% (360.62 points)
- Nasdaq Composite: 13,429.98, up 2.32%
Stocks marched higher even after somewhat downbeat economic data Friday. The Commerce Department said retail sales in April were virtually unchanged from more than 10% jump in March, missing expectations, and a consumer confidence reading from the University of Michigan unexpectedly fell on inflation worries.
“I think the lackluster readings have a lot to do with short-term factors and the market is looking through that,” Rob Haworth, senior investment strategy director at US Bank Wealth Management in Seattle, told Insider on Friday.”It’s looking at a change in CDC guidance,” that loosens restrictions on mask-wearing, “and it’s still looking at getting to reopenings and what that next wave of activity may be.”
The miss in retail sales appeared to be offset by comments made Friday by Cleveland Fed Bank President Loretta Mester who said in Bloomberg Television that monetary policy is in a “good place” as officials still work on improving employment levels.
Her view on leaving policy where is it for now followed comments this week by Federal Reserve Governor Christopher Waller, Fed Governor Lael Brainard and Fed Vice Chairman Richard Clarida who said the central bank will look past likely transitory inflation pressures and stick with near-zero interest rates to aid the world’s largest economy.
Around the markets, Coinbase shares rose following the crypto exchange’s first-quarter results, and as the company said it will soon add dogecoin to its roster of digital currencies to trade.
Lumber prices fell for a 5th straight session in a reprieve for surging commodity prices.
Gold rose to $1,841 per ounce. Long-dated US Treasury yields fell, with the 10-year yield at 1.64%.