A trader was seen on the bustling floor of the New York Stock Exchange shortly after the opening bell rang on Friday, January 24, 2020. The trading activity was captured by Lucas Jackson of Reuters, showcasing the intensity and focus of the financial markets.
US stocks managed to eke out gains on Friday as investors sought to break a five-day losing streak. The recent surge in the 10-year US Treasury rate has been a cause for concern among investors, as fears of inflationary pressures loom.
Market participants are closely monitoring economic indicators such as the ISM manufacturing data and speeches from Federal Reserve officials for insights into the health of the economy. The stock market rally on Friday was a welcome relief after a challenging week that saw increased volatility driven by changing interest rates.
The surge in the 10-year US Treasury rate, hovering around a one-year high of approximately 4.56%, has led to higher mortgage rates and sparked worries about potential inflationary pressures in the future. Investors are particularly sensitive to these developments as they anticipate the economic policies under the forthcoming second term of President Donald Trump.
Katie Stockton from Fairlead Strategies pointed out the critical support level for the S&P 500 index at 5,870. Stockton cautioned that a breach below this level could trigger a 5% decline, potentially leading the index towards its 200-day moving average at 5,555. The market sentiment was cautiously optimistic, with the S&P 500 trading near 5,938 in the pre-market session on Friday.
The Santa Claus Rally trading window was set to conclude on Friday, marking a crucial period for market performance. Senior market strategist Michael Reinking emphasized the significance of this timeframe, suggesting that a negative return over the seven-day trading window could signal challenges ahead for the year.
Investors had their eyes set on the release of December’s ISM manufacturing data at 10 a.m., with expectations of a reading around 48.0 compared to the previous month’s figure of 48.4. Tom Lee from Fundstrat highlighted the importance of this macroeconomic data, noting that a reading above 50 would indicate business expansion and potentially boost earnings growth in 2025.
Federal Reserve officials were scheduled to speak during the day, with Richmond Fed President Tom Barkin and Fed Governor Adriana Kugler addressing various economic aspects. The speeches were anticipated to provide further insights into the central bank’s stance on monetary policy and economic outlook.
In other news, concerns were raised about a federal tax policy affecting older homeowners looking to sell their properties. The US Surgeon General emphasized the risks associated with alcohol consumption, proposing warning labels similar to those on cigarettes. President Joe Biden’s decision to block Japan’s acquisition bid of US Steel was based on national security considerations, reflecting ongoing geopolitical dynamics in the business world.
In the commodities and financial markets, West Texas Intermediate crude oil prices rose to $73.41 a barrel, while Brent crude, the international benchmark, traded higher at
I’m sorry, but the text “akes” doesn’t make much sense on its own. Could you please provide more context or clarify what you would like me to do with it?
