Stocks’ rally falters as consumer confidence falls to 6-month low

US stocks lost momentum in morning trading on Friday after consumer sentiment hit a six-month low.

The Dow Jones Industrial Average (^DJI), looking for its eighth straight win, held on to gains of about 0.2%, with the S&P 500 (^GSPC) hovering above the flat line on the heels of closing above 5,200 for the first time. in a month. The Nasdaq Composite Index (^IXIC) fell approximately 0.1%.

Last University of Michigan Consumer Survey Data released on Friday revealed a 13% decline in overall sentiment during May. The index reading for this month came at 67.4, its lowest level in six months, and much lower than economists’ expectations of 76.2.

The decline in sentiment comes as investors debate the future of interest rate cuts amid recent signs of a slowdown in the labor market.

Read more: How does the labor market affect inflation?

Given this, investors will be listening closely to speeches from a large group of Fed spokesmen on Friday for more information on the timing, pace and opportunity for policy easing. Those scheduled to appear include Michelle Bowman, Neel Kashkari, and Austin Goolsby.

Earlier, Atlanta Fed President Raphael Bostic said he expected one rate cut late this year, but echoed fellow official Mary Daly’s preference to wait for a stronger signal that price pressures are easing.

On the corporate front, shares of TSMC (TSM) rose after the Taiwanese chipmaker giant said its sales jumped 60% in April. He credited the continued demand for artificial intelligence coupled with the revival of consumer electronic devices such as smartphones.

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He lives5 updates

  • Popular stocks in early trading: Novavax, TSM, Nvidia

    Here are the stocks on Yahoo Finance’s trending index page early Friday:

    Novavax (Nafax): The drug company’s shares rose more than 130% on Friday after it said it had arrived A deal worth $1.4 billion With the French company Sanofi to participate in the marketing of its current vaccine for Covid-19 around the world.

    Taiwan Semiconductor Manufacturing Company (TSM): Shares rose nearly 5% on Friday, after the chipmaker said its April sales rose 60% year-over-year, indicating enduring demand for AI-powered chips. TSM is a leading supplier to technology giants including nvidia (NVDA)And amd (AMD)which rose in the wake of TSM’s results.

    soundhound (Suwon): The artificial intelligence company’s shares jumped more than 15% after it recorded a 73% revenue growth in the first quarter and boosted its full-year revenue forecast for 2024. The company’s CEO, Keovan Mohajersaid, said that voice artificial intelligence is quickly becoming a must-have tool. For customer service.

    Sweet Green (Saint-Germain): Shares rose 40% on Friday after the fast-casual salad chain reported first-quarter earnings that beat expectations and also boosted its full-year forecast for higher menu prices. Same-store sales rose 5% in the quarter amid price increases that the company also promoted New steak offerwhich was officially added to the rosters on May 7.

  • Consumer sentiment declined in May as concerns over inflation and interest rates increased

    Americans have become increasingly concerned about persistent inflation and the prospect of higher interest rates for longer than initially hoped.

    Last University of Michigan Consumer Survey Data released on Friday revealed a 13% decline in overall sentiment during May. The index reading for this month came at 67.4, its lowest level in six months, and much lower than economists’ expectations for a reading of 76.2.

    Inflation expectations for next year were at 3.5% in Friday’s report, up from 3.2% the previous month. Long-term inflation expectations rose to 3.1%, up from 3% the previous month.

    “While consumers have been reserving their judgment over the past few months, they now see negative developments on a number of dimensions,” Joan Hsu, director of the consumer survey, said in a statement. “They expressed concerns that inflation, unemployment and interest rates may all move in an unfavorable direction next year.”

  • Stocks open higher. Dow Jones aims for the eighth straight day of gains

    Stocks opened higher on Friday, with the Dow Jones Industrial Average (^DJI) looking to end the week with an eighth straight win after a particularly slow April for markets.

    At the opening bell, the Dow Jones was up about 0.2%, and the S&P 500 was up about 0.3% on the heels of closing above 5,200 for the first time in a month. The Nasdaq Composite Index (^IXIC) also jumped about 0.2%.

    The yield on the benchmark 10-year Treasury note (^TNX) rose about 4 basis points to trade near 4.49%.

    The gains come as investors appear more confident that the Federal Reserve may cut interest rates sooner than expected after the April jobs report indicated signs of a slowing labor market.

    A slew of Fed spokesmen on Friday’s agenda may provide more clarity on the future path of interest rates. Michelle Bowman, Neel Kashkari, and Austin Goolsby are scheduled to appear.

  • Travel directions

    Citi is making a little profit play via mining today, pointing to these notes from this week’s AirBNB (ABNB) call:

    “Nights booked in Paris during the Summer Olympics are 5x higher than they were at this time last year, while Germany is seeing a similar trend for the European Cup this summer with nights booked almost 2x higher than last year.”

  • Morning market statistics you should know

    The feel-good atmosphere continues in the markets, and the happiness begins to intensify.

    The S&P 500 is still on track for a third straight weekly gain for the first time since February. What’s more, as Deutsche Bank points out, this was the strongest six-session performance for the benchmark index this year so far. The S&P 500 has risen 3.9% since its recent low on May 1.

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