Highlights
Stocks advanced Friday after good news from Alphabet and Microsoft lifted megacaps and revived the market's fascination with artificial intelligence. The Dow Jones industrial average rose 0.4 percent, the S&P 500 gained 1.0 percent, and the Nasdaq rallied by 2.0 percent. Bond yields fell while oil prices and the dollar rose.
Equities and risk appetite got a lift as market interest rates declined amid relief that inflation figures in the monthly personal consumption expenditures report were not as bad as feared. Core PCE prices rose 0.3 percent in March from February, in line with expectations. Core PCE rose 2.8 percent on the year, marginally above the 2.7 percent most expected, and unchanged from the year-over year rate in February.
Upbeat quarterly results from Alphabet and Microsoft largely reflected business segments geared toward AI, which in turn lifted AI-linked chipmakers, especially Nvidia. Chip gear maker KLA was another big winner after its results topped expectations. Other leaders included investment funds, paced by good news from T Rowe Price, plus homebuilders, apparel, packaging, and pharma.
On the downside, disappointing results from Exxon Mobil weighed on energy stocks. Saia's earnings miss hit trucking. Other lagging sectors included insurance, utilities, airlines and casinos.
Equities and risk appetite got a lift as market interest rates declined amid relief that inflation figures in the monthly personal consumption expenditures report were not as bad as feared. Core PCE prices rose 0.3 percent in March from February, in line with expectations. Core PCE rose 2.8 percent on the year, marginally above the 2.7 percent most expected, and unchanged from the year-over year rate in February.
Upbeat quarterly results from Alphabet and Microsoft largely reflected business segments geared toward AI, which in turn lifted AI-linked chipmakers, especially Nvidia. Chip gear maker KLA was another big winner after its results topped expectations. Other leaders included investment funds, paced by good news from T Rowe Price, plus homebuilders, apparel, packaging, and pharma.
On the downside, disappointing results from Exxon Mobil weighed on energy stocks. Saia's earnings miss hit trucking. Other lagging sectors included insurance, utilities, airlines and casinos.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
