U.S. stocks rallied on Friday as Wall Street set a fresh bid for a bullish milestone as investors wavered over the possibility of a rate cut.
The Dow Jones Industrial Average (^DJI) remained solid after reaching the important $40,000 level for the first time in Thursday trading. The S&P 500 (^GSPC) rose 0.1% and the tech-heavy Nasdaq Composite Index (^IXIC) rose 0.1%, with all indexes on track for a weekly win.
Stocks rose sharply following comments from Federal Reserve officials warning that interest rates are likely to remain at historic highs for some time. That dampened enthusiasm for a potential rate cut in September, which had been heightened by strong inflation data.
read more: How does the labor market affect inflation?
A light business and corporate calendar on Friday leaves little springboard for the Dow to cross a key milestone, while the S&P 500 and Nasdaq keep new records of their own within reach. .
For this reason, attention will be focused on the attendance of Federal Reserve Chairs Mary Daly and Christopher Waller on Friday. Markets will likely heed any departure from the message from colleagues that the Fed will track data and wait for clear signs of inflation cooling before taking action.
Among individual stocks, Reddit (RDDT) stock rose 15% after the move, not far from its March closing high of $65.11. The social media platform has a partnership with OpenAI that will see ChatGPT integrate the forum’s content.
Meanwhile, GameStop (GME) stock fell more than 20% after the gaming retailer said it expects first-quarter sales to decline as shoppers shift to online retailers. Meme stocks soared earlier in the week in the aftermath of the 2021 frenzy, but the rally has turned lower in recent days.
live3 updates
-
-
-
Reddit begins pre-market with OpenAI deal
Reddit (RDDT) is up 14% pre-market on a new deal with OpenAI. This will allow OpenAI to access Reddit’s data to help build models.
The deal comes as no surprise to Reddit investors. The company recently signed a similar deal with Alphabet (GOOGL). Reddit co-founder and CEO Steve Huffman told me last week that there could be more deals like this as part of reinventing the platform.
A new user interface is expected to arrive later this year.
Read the full story below.
