On Friday, US benchmark equity indexes experienced a notable increase, reflecting a growing sense of optimism among investors regarding the government's ability to avert a shutdown. The Nasdaq Composite climbed 2.3%, reaching 17,704.9, while the S&P 500 saw a rise of 1.9% to 5,624.7. The Dow Jones Industrial Average also reported an uptick of 1.5%, closing at 41,409.4.
This positive trend was evident across all sectors, with the technology and energy segments posting the largest gains. In the bond market, US Treasury yields shifted upward, with the 10-year yield gaining approximately 4.4 basis points to settle at 4.3%, and the two-year yield rising 5 basis points to reach 4%. Oil prices also saw an increase, as April West Texas Intermediate crude oil rose by 0.9%, closing at $67.16 per barrel on Friday. Experts indicate that market sentiment appears buoyed by recent developments in Washington.
According to Stifel, a notable indication of this optimism is Senate Democratic Leader Chuck Schumer's withdrawal of objections to the latest spending bill proposal, which was seen as pivotal in maintaining government operations. Meanwhile, economic indicators suggest a mixed outlook for consumer sentiment.
The University of Michigan's preliminary survey revealed a drop in US consumer sentiment to 57.9 in March, down from 64.7 in the previous month, against Bloomberg's estimate of 63. Furthermore, year-ahead inflation expectations rose to 4.9% in March—marking the highest level since November 2022—up from 4.3% in February.
Additionally, price growth projections for the next five years were adjusted to 3.9%, an increase from 3.5% in the prior month. In company-specific news, Ulta Beauty emerged as the top gainer on the S&P 500, with shares climbing nearly 14%. While the beauty retailer’s full-year guidance fell short of Wall Street's expectations disclosed late Thursday, UBS noted potential for positive revisions in earnings over the upcoming quarters. Crown Castle shares jumped 10% after the company announced its agreement to divest its small cells and fiber solutions businesses for $8.5 billion to various buyers, a move that comes following a strategic review. KKR shares rose by 4.2% after a deadline extension was issued for KKR and Stonepeak Partners regarding their offer to acquire UK-based real estate investment trust Assura, now moved to April 11. Rubrik saw an impressive 27% spike in share value, following the release of its fiscal Q4 results and favorable guidance for fiscal Q1 and the full year, which exceeded market expectations. Conversely, Abbott Laboratories faced a decline, with shares dropping 2.5% after a Missouri state appeals judge mandated a retrial for a civil lawsuit involving its formula milk. On the commodities front, gold prices increased by 0.1% to $2,993 per troy ounce, while silver remained steady at $34.32..