Highlights
Stocks ended narrowly mixed Friday in quiet trading as the S&P 500 and Nasdaq posted a third straight weekly gain. The major stock indexes are holding more than 10 percent above their August lows, a remarkable showing.
The Dow Jones industrial average firmed 0.3 percent, the S&P 500 eased 0.1 percent and the Nasdaq was down 0.4 percent. Bond yields and the dollar declined while oil prices slipped.
The dollar was notably weaker versus the yen, which renewed concern about renewed potential unwinding of the yen carry trade, a development that rattled global markets back in August. The latest yen gains came as the market viewed the winner of an election to lead Japan's Liberal Democrats as hawkish on inflation and interest rates. Shigeru Ishiba, who was elected head of the LDP, is expected to become Japan's next prime minister.
Stocks were mostly higher Friday even as the indexes failed to make much headway. The underlying favorable setting reflected supportive inflation figures in the latest personal consumption expenditures price indexes in the personal income and spending report. Investors are increasingly convinced the economy is headed for a soft landing with growth holding up and interest rates coming down. China's big package of stimulus measures unveiled this week added to the risk-on mentality.
Among sectors Friday, best were communications services, utilities, industrials, energy and financials. Lagging were technology and materials.
The Dow Jones industrial average firmed 0.3 percent, the S&P 500 eased 0.1 percent and the Nasdaq was down 0.4 percent. Bond yields and the dollar declined while oil prices slipped.
The dollar was notably weaker versus the yen, which renewed concern about renewed potential unwinding of the yen carry trade, a development that rattled global markets back in August. The latest yen gains came as the market viewed the winner of an election to lead Japan's Liberal Democrats as hawkish on inflation and interest rates. Shigeru Ishiba, who was elected head of the LDP, is expected to become Japan's next prime minister.
Stocks were mostly higher Friday even as the indexes failed to make much headway. The underlying favorable setting reflected supportive inflation figures in the latest personal consumption expenditures price indexes in the personal income and spending report. Investors are increasingly convinced the economy is headed for a soft landing with growth holding up and interest rates coming down. China's big package of stimulus measures unveiled this week added to the risk-on mentality.
Among sectors Friday, best were communications services, utilities, industrials, energy and financials. Lagging were technology and materials.
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.
