Dow Jones hits new high while broader market dips
NEW YORK, New York – The blue-chip Dow Jones index strode to a new high Friday while the Nasdaq Composite and Standard and Poor’s 500 came under selling pressure.
“The market at this point is pretty much pricing in a soft landing, and pricing in that we have defeated inflation, and that the Fed will be able to lower rates without causing a bunch of harm to the economy,” Liz Young Thomas, head of investment strategy at SoFi in New York told Reuters Friday.
The U.S. Commerce Department reported a moderate rise in consumer spending while the University of Michigan’s final September reading on consumer sentiment registered at 70.1, above expectations of 69.3, according to a Reuters poll.
The Standard and Poor’s 500 saw a slight decline Friday, closing at 5,738.17, down by 7.20 points, representing a loss of 0.13 percent. The index faced pressure from weakening tech and healthcare stocks, though some sectors showed resilience.
The Dow Jones Industrial Average fared better, rising by 137.89 points to close at 42,313.00, an increase of 0.33 percent. The Dow’s positive movement was supported by gains in blue-chip stocks, with industrial and consumer sectors leading the way.
In contrast, the NASDAQ Composite experienced a more significant decline, dropping by 70.70 points to finish at 18,119.59, marking a 0.39 percent decrease. The tech-heavy index faced headwinds from underperforming technology companies, which dragged it down for the session.
Global Foreign Exchange Markets Close with Mixed Results Friday
On Friday, the global foreign exchange markets showed varied movements across key currency pairs, reflecting shifts in investor sentiment and broader market conditions.
The US Dollar Index dipped by 0.13 points to 100.39, a decline of 0.13 percent.
The Euro/US dollar (EUR/USD) pair saw a slight decline, drifting down to 1.1164, a drop of 0.11 percent. This fall in the euro comes amid continued speculation over the European Central Bank’s next policy moves.
Meanwhile, the US dollar/Japanese yen (USD/JPY) pair experienced a sharp fall Friday, dropping 1.86 percent to 142.10. The yen’s strengthening follows signals of potential further changes in Japan’s monetary policy, driving investors towards the currency.
The US dollar/Canadian dollar (USD/CAD) pair, however, posted gains, rising to 1.3516, an increase of 0.39 percent. A combination of strong US data and weaker oil prices contributed to the Canadian dollar’s decline against the US dollar.
The British pound/US dollar (GBP/USD) pair dropped by 0.27 percent, settling at 1.3379. This comes as the British pound faces ongoing uncertainty around the UK’s economic outlook and interest rate decisions.
The US dollar/Swiss franc (USD/CHF) pair also saw a decline Friday, falling to 0.8404, down by 0.67 percent. The Swiss franc continues to be viewed as a safe-haven currency, contributing to the dollar’s weakness against it.
In the Australian market, the Australian dollar/US dollar (AUD/USD) pair rose by 0.17 percent, to 0.6907, driven by strong commodity prices and improved investor confidence in the region. It was the first time the Aussie had hurdled the 0.6900 barrier for some time. The AUD hit an intraday high Friday of 0.6937.
Lastly, the New Zealand dollar/US dollar (NZD/USD) pair increased by 0.32 percent, to 0.6348. The New Zealand dollar benefited from better-than-expected economic data and rising risk appetite.
Global Stock Markets End the Week on Mixed Performance
On Friday, major stock indices around the world closed with mixed results, showcasing varying performances across regions and sectors.
CANADA
North of the U.S. border, Canada’s S&P/TSX Composite Index fell by 77.01 points to close at 23,956.82, a decrease of 0.32 percent. Weakness in energy and materials stocks contributed to the index’s decline, despite some resilience in financials.
UNITED KINGDOM
In London, the FTSE 100 rose by 35.85 points, closing at 8,320.76, an increase of 0.43 percent.
EUROPE
Germany’s DAX PERFORMANCE-INDEX saw a significant uptick Friday, climbing 235.27 points to 19,473.63, marking a 1.22 percent gain.
Meanwhile, in France the CAC 40 increased by 49.70 points to close at 7,791.79, a rise of 0.64 percent.
Elsewhere in Europe, the ESTX 50 PR.EUR increased by 34.86 points, finishing at 5,067.45, representing a 0.69 percent gain.
The Euronext 100 Index advanced by 8.67 points, closing at 1,505.34, a rise of 0.58 percent, while the BEL 20 in Belgium added 36.96 points, closing at 4,318.18, a gain of 0.86 percent.
ASIA
In Asia, Hong Kong’s Hang Seng Index surged by 707.72 points Friday to finish at 20,632.30, an impressive gain of 3.55 percent.
China’s SSE Composite Index surged by 86.58 points to close at 3,087.53, a significant gain of 2.88 percent.
In Japan the Nikkei 225 jumped by 903.93 points, finishing at 39,829.56, marking a 2.32 percent rise, while the Japanese Yen Currency Index rose by 1.25 points to 70.30, a gain of 1.80 percent.
Singapore’s STI Index moved in the opposite direction, declining by 8.87 points to 3,573.36, a decrease of 0.25 percent.
In South Korea the KOSPI Composite Index fell by 21.79 points to 2,649.78, representing a 0.82 percent decline.
Taiwan’s TSEC Weighted Index slid by 36.02 points on Friday to close at 22,822.79, a drop of 0.16 percent.
In South Asia, India’s S&P BSE SENSEX dropped by 264.27 points, closing at 85,571.85, a decline of 0.31 percent.
In Indonesia the IDX Composite fell by 47.60 points, closing at 7,696.92, a loss of 0.61 percent, while Malaysia’s FTSE Bursa Malaysia KLCI dipped by 11.23 points to 1,660.09, representing a 0.67 percent drop.
OCEANIA
In Australia the S&P/ASX 200 rose slightly Friday, adding 8.50 points to close at 8,212.20, a gain of 0.10 percent, while the Australian ALL ORDINARIES advanced by 14.00 points to finish at 8,476.80, reflecting a 0.17 percent increase.
New Zealand’s S&P/NZX 50 Index also posted losses, declining by 34.17 points to close at 12,457.41, a decrease of 0.27 percent.
MIDDLE EAST
Mideast markets were mostly closed on Friday and are expected to resume trading on Sunday.
AFRICA
South Africa’s Top 40 USD Net TRI Index advanced by 40.33 points to close at 4,996.72, an increase of 0.81 percent.