In the latest updates from the US equity markets, benchmark indexes like the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have shown positive movement, with traders closely analyzing the remarks made by Federal Reserve Chair Jerome Powell alongside the official jobs report for February. As of midday Friday, the Dow Jones Industrial Average climbed 0.4% to reach 42,733.2 points, while both the S&P 500 and Nasdaq Composite increased by 0.3%, standing at 5,755.1 and 18,116.2 points, respectively.
The utilities and energy sectors were leading the gains, while financial stocks experienced the most significant decline. Federal Reserve Chair Powell emphasized the necessity for "greater clarity" on changes made by the Trump administration regarding economic policy prior to any decision-making on interest rates.
He stated, "As we parse the incoming information regarding policy shifts, our focus is on distinguishing the significant signals from the background noise while the outlook continues to evolve." He further reassured that despite the high levels of uncertainty, the US economy remains in a promising position. In recent developments, the Trump administration is considering enforcing equivalent tariffs on Canadian lumber and dairy products as soon as Friday, aiming to counter Canada's existing tariffs on US products, as reported by Bloomberg News, citing President Donald Trump. On Thursday, the White House announced temporary tariff exemptions for goods from Canada and Mexico that align with the North American trade agreements.
Additionally, the US recently ramped up its tariffs on imports from China, prompting retaliatory measures from both Canada and China. In relation to US Treasury yields, there was also a notable increase on Friday, with two-year rates edging up by 3.9 basis points to 4%, while the 10-year rate rose 3.1 basis points to 4.31%. Turning to employment statistics, the latest report from the Bureau of Labor Statistics reveals that nonfarm payrolls in the US ascended by 151,000 last month.
This figure fell short of market expectations, which anticipated an increase of 160,000. The unemployment rate ticked up to 4.1% from January’s 4%, deviating from projections for February. TD Economics commented, “Job growth is expected to decelerate in the upcoming months, as federal layoffs tied to the Department of Government Efficiency accumulate, coupled with ongoing uncertainties regarding trade policies that could dampen short-term hiring plans.” On the commodities front, West Texas Intermediate crude oil experienced a rise of 0.9%, priced at $67 per barrel intraday. Regarding corporate performances, Broadcom ($AVGO) saw its shares surge by 8.5%, marking the best performance on the S&P 500 index.
The chipmaker's optimistic outlook for fiscal second-quarter revenue followed a robust performance in the first quarter, shared late Thursday. Following Broadcom, Walgreens Boots Alliance ($WBA) also had a strong showing, with shares up 7.6% intraday Friday. This comes after the drugstore chain announced a deal late Thursday to be acquired by an affiliate of Sycamore Partners for an amount that could reach up to $23.7 billion. In contrast, Hewlett Packard Enterprise ($HPE) faced a substantial decline, with shares plummeting by nearly 15% intraday Friday, making it the poorest performer on the S&P 500.
This downturn occurred after the company provided a pessimistic full-year earnings forecast alongside plans for workforce reductions. In the precious metals market, gold prices dipped by 0.4% to settle at $2,916.80 per troy ounce, and silver dropped 1.5% to $32.84 per ounce. To summarize the companies mentioned, we note: Broadcom, Walgreens Boots Alliance, and Hewlett Packard Enterprise..