U.S. stocks rose on Friday, snapping the Dow Jones Industrial Average to its eighth straight day of gains as investors waited for a parade of Fed speakers to test growing confidence that a rate cut is on the horizon.
The Dow Jones Industrial Average (^DJI) rose about 0.2%, and the benchmark S&P 500 (^GSPC) rose about 0.3%, closing above 5,200 for the first time in a month. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose about 0.2% at the opening bell.
The blue-chip Dow Jones Industrial Average rose as stocks recovered from April’s slump, snapping its longest winning streak of the year. The rally was fueled by growing confidence that the Federal Reserve could cut interest rates sooner than expected given recent signs of a cooling labor market.
read more: How does the labor market affect inflation?
Given this situation, investors will be listening closely to Fed speakers on Friday for more insight into the timing, pace, and likelihood of policy easing. Michelle Bowman, Neel Kashkari and Austan Goolsby are also scheduled to appear.
Earlier, Atlanta Fed President Rafael Bostic said he expected a unilateral rate cut before the end of the year, but fellow officials said they would wait for more solid signals that price pressures were easing. I agreed with Mr. Daly’s wishes.
On the corporate side, shares of TSMC (TSM), a major Taiwanese contract semiconductor manufacturing company, soared after the company announced that its sales rose 60% in April. It was assessed that the demand for AI is continuing, coupled with the revival of home appliances such as smartphones.
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