Mateo Colombo
U.S. stocks weakened while Treasury yields rose as market participants returned from the Thanksgiving holiday to a truncated Black Friday trading session.
Stock markets will close at 1300 ET, while bond markets will close at 1400 ET.
Wall Street The major averages were mixed amid small moves. The tech-heavy Nasdaq Composite (IND COMP.) was down 0.16% to 14,243.08 points in midday trading, while the benchmark S&P 500 index (SP500) was down 0.02% at 4,555.57 points. The blue-chip Dow (dji) was up to 0.18% at 35,335.08 points.
Of the 11 S&P sectors, nine were in positive territory, led by Energy. Communication Services and technology were the two losers.
The current bond sell-off in Europe has put some pressure on domestic bond markets. The 30-year yield (US30Y) rose 3 basis points to 4.61%, while the 10-year yield (US10Y) rose 7 basis points to 4.48%. The more rate-sensitive short-term 2-year yield (US2Y) rose 3 basis points to 4.96%.
See live data on how Treasury yields are performing across the curve on the Seeking Alpha bond page.
Friday’s economic calendar only included the S&P Global Flash US Composite PMI, which showed private sector employment in November fell for the first time since June 2020.
“U.S. growth dynamics will be the focus next week…the key focus will be data on personal income and spending, as well as the Federal Reserve’s preferred inflation gauge, the PCE, which is will publish on Thursday, as consumer strength remains a key discussion point ahead of the December 13 Federal Reserve meeting,” said Galina Pozdnyakova of Deutsche Bank.
The benchmark S&P 500 Index (SP500) was headed for its fourth consecutive weekly gain, its best streak since early June. The advance came amid a sustained rally driven largely by a general consensus that the Federal Reserve has stopped raising rates. The positive sentiment has attracted the largest inflows from retail investors into stocks since early 2022.
“Retail sentiment looked upbeat following the strong market rally in November. Retail investors net bought +$4.8 billion of stocks in cash last week, +2.3 standard deviations above the trailing 12-month average and the highest weekly entry on record since April 2022,” JPMorgan’s Peng Cheng. saying.
“ETFs saw an inflow of $2.7 billion. Unlike the previous week, broad-based equity ETFs, including S&P (SP500), Nasdaq (COMP.IND), and Russell (RTY), saw lower demand of the average, possibly due to retail investors’ preference for unique names,” Cheng added.
Among active stocks on Friday, iRobot (IRBT) rose nearly 40% following a report that Amazon’s (AMZN) planned $1.4 billion acquisition of the maker of the Roomba robot vacuum cleaner was ready for European approval.
