The US benchmark equity indexes closed higher on Friday, demonstrating investor optimism as markets responded to falling discussions surrounding rare earth minerals between President Donald Trump and Ukrainian President, Volodymyr Zelenskyy. The Nasdaq Composite and the S&P 500 both posted impressive gains of 1.6%, finishing at 18,847.3 and 5,954.5, respectively.
The Dow Jones Industrial Average also joined the upward trend, climbing 1.4% to reach 43,840.9. In a remarkable move, US Treasury yields slid, with the 10-year rate sinking 8.1 basis points to settle at 4.21%, while the two-year rate saw a drop of 9.5 basis points to 3.99%. This shift may signal investor sentiment leaning towards safety amid market volatility.
On the commodities front, April West Texas Intermediate crude oil dwindled by 0.5%, finishing at $70.03 per barrel on Friday, reflecting the ongoing fluctuations in global oil demand and supply dynamics. Economic data indicated that US personal consumption expenditures fell by 0.2% in January, aligning perfectly with estimates from a Bloomberg poll that anticipated a slowdown in spending growth to 0.2%.
This information was released by the Bureau of Economic Analysis, hinting at cautious consumer behavior amid economic uncertainty. The Federal Reserve's preferred core measure of inflation, which excludes the volatile food and energy prices, decelerated to 2.6% in January from 2.9% the previous month.
Sequentially, this core measure noted a modest acceleration to a 0.3% gain, both figures aligning with analysts' expectations, suggesting a delicate balance in the economy's inflation dynamics. In corporate developments, the Trump-appointed leadership at the Consumer Financial Protection Bureau plans to terminate nearly all of its 1,700 employees and "wind down" the agency, according to testimonies from current and former employees.
Examining company performances, NetApp ($NTAP) emerged as the worst performer on the S&P 500, witnessing a staggering drop of over 15% after the company adjusted its fiscal 2025 outlook downward this past Thursday. On the contrary, AES ($AES) saw its shares soar over 11% as the company projected a positive earnings outlook for the year following a robust quarterly performance.
Furthermore, Intel ($INTC) announced it will continue the construction of its ambitious $28 billion chip manufacturing facilities in Ohio at a "slower pace," now expecting to complete the projects by 2030 at the earliest. This announcement lifted Intel shares by 2.8%. In other noteworthy news, Bank7 ($BSVN) experienced a rise of 1.5% after acquiring First American Mortgage, a provider of residential mortgage lending services, although the acquisition price remains undisclosed.
In precious metals, gold fell 1.1% to $2,865.0 per troy ounce, while silver decreased by 1.3% to settle at $31.70 per troy ounce, reflecting pressures in the commodities market amidst financial shifts..