US benchmark equity indexes exhibited notable gains during intraday trading as markets assessed the latest data from the manufacturing sector alongside comments from Federal Reserve officials. The Nasdaq Composite experienced a robust increase of 1.4%, climbing to 19,549.3, while the S&P 500 also made strides, rising 1% to reach 5,929.1.
The Dow Jones Industrial Average enjoyed a rise of 0.6%, settling at 42,646.3. All market sectors displayed upward momentum, with consumer discretionary and technology leading the charge. In the realm of economic news, the contraction in the US manufacturing sector showed signs of improvement in December, as indicated by the Institute for Supply Management's survey, which revealed a rise in demand.
BMO Capital Markets noted, "On balance, the report suggests manufacturers ended the year with a hint of optimism, but they could face some pretty stiff challenges in the new year." Adding to the narrative, a survey from S&P Global revealed that the US manufacturing sector remained in contraction territory for the last month, grappling with declines in both output and new orders, while sentiment hit a low not seen since August. Intradays Friday, the US 10-year yield ticked up by 1.2 basis points to 4.59%, while the yield on the two-year increased by one basis point, reaching 4.26%.
In comments reflecting economic sentiment, Richmond Fed President Tom Barkin expressed a positive baseline expectation for the US economy moving into 2025, highlighting robust consumer spending, albeit with inflationary risks looming. Barkin commented, "I expect the story for the coming year to be more about supply and demand -- and perhaps geopolitics -- than monetary policy." He further stated, "Were employment to falter or inflation to reemerge, we have the tools to respond." In commodity markets, West Texas Intermediate crude oil recorded a rise of 1.5%, reaching $74.23 per barrel intraday.
Turning to corporate news, Nvidia is anticipated to unveil new gaming products at the forthcoming CES tech show. Investors are keen to receive updates regarding the trajectory of the company's generative artificial intelligence sales, as noted by Wedbush Securities in a client memo. The shares of the chip-making giant surged 4.4%, ranking as the top gainer on the Dow and performing strongly on the Nasdaq as well. On the S&P 500, Vistra emerged as the standout performer with a remarkable gain of 7.9%, following UBS's decision to ramp up its price target on the stock from $161 to $174. In contrast, Adobe shares took a hit, declining by 2.5%, marking the largest drop on the Nasdaq, as UBS revised its price target on the software giant's stock down to $475 from $525. In regulatory news, President Joe Biden intervened to block United States Steel's proposed acquisition by Japan's Nippon Steel, raising concerns over national security and supply chain vulnerabilities.
Consequently, the shares of the US steelmaker fell by 5.3%. In precious metals, gold prices dipped by 0.5%, settling at $2,655.50 per troy ounce, while silver enjoyed a slight upward movement, gaining 0.5% to reach $30.04 per ounce. In summary, market dynamics reflect both optimism and challenges ahead as corporations reveal strategic movements and the economic landscape continues to evolve..