In a notable development in the financial markets, US benchmark equity indexes appear poised to close higher on Friday, largely influenced by recent comments from Federal Reserve Chair Jerome Powell regarding the policy changes of the Trump administration. The Dow Jones Industrial Average experienced an uptick of 0.3%, reaching a level of 42,700.9.
Meanwhile, the Nasdaq Composite saw a modest increase of 0.4%, climbing to 18,137.9, and the S&P 500 also rose by 0.3%, settling at 5755.9. The utilities and energy sectors emerged as the top gainers in this market rally, while the consumer staples sector faced the sharpest decline. Among the notable performances on the S&P 500, Broadcom (AVGO) stood out as the best performer, with its shares surging by 8%.
This impressive gain followed the company's announcement late Thursday, which provided fiscal second-quarter revenue guidance exceeding analysts' expectations, building on a solid first-quarter performance. In contrast, Hewlett Packard Enterprise (HPE) faced a challenging day in the market, with shares plummeting by 13%.
The drop came after the company unveiled plans to realize approximately $350 million in run-rate cost savings by the fiscal year 2027, primarily through workforce reductions. Additionally, Costco Wholesale (COST) reported a decline of 6.6% in its shares. This decrease followed the company’s fiscal Q2 results, which fell short of the consensus estimates set by analysts. In the bond market, the 10-year US Treasury yield increased by 4.3 basis points, now standing at 4.3%, while the two-year rate saw a rise of 2.9 basis points, reaching 4%. On the commodities front, West Texas Intermediate crude oil for April delivery was up by 1%, trading at $66.99 per barrel.
This rise in oil prices may reflect ongoing adjustments within international markets as they respond to geopolitical factors and production levels. In summary, the financial landscape today reflects a complex interplay between economic indicators and corporate earnings, setting the stage for potential shifts in investment strategies moving forward..