US markets end higher on Friday

14 Sep 2024 Evaluate

The US markets ended higher on Friday. Optimism about the outlook for interest rates contributed to the continued strength on markets ahead of the Federal Reserve's monetary policy meeting next week. The Fed is scheduled to announce its latest monetary policy decision next Wednesday and is almost universally expected to lower interest rates by at least 25 basis points. Recent inflation data has partly offset optimism the Fed will lower rates more aggressively, but the central bank is still expected to continue cutting rates over the next several months. Adding to the positive sentiment on markets, the University of Michigan released a report showing consumer sentiment in the U.S. has improved by more than anticipated in the month of September.

The University of Michigan said its consumer sentiment index rose to 69.0 in September from 67.9 in August, while street had expected the index to inch up to 68.0. The report also showed a continued decrease by year-ahead inflation expectations, which fell for the fourth consecutive month. Year-ahead inflation expectations edged down to 2.7 percent in September from 2.8 percent in August, hitting the lowest level since December 2020. On the sectoral front, interest rate-sensitive housing stocks moved sharply higher on the day, driving the Philadelphia Housing Sector Index up by 2.8 percent to a record closing high. Gold stocks also showed a strong move to the upside amid a notable increase by the price of the precious metal, with the NYSE Arca Gold Bugs Index surging by 2.2 percent.

Dow Jones Industrial Average rose 297.01 points or 0.72 percent to 41,393.78, Nasdaq jumped 114.3 points or 0.65 percent to 17,683.98 and S&P 500 was up by 30.26 points or 0.54 percent to 5,626.02.