In a notable display of resilience, US equity indexes advanced higher, positioning themselves for weekly gains. As of midday trading on Friday, the Nasdaq Composite climbed by 0.2% to reach 17,631.4 points. Similarly, the S&P 500 and the Dow Jones Industrial Average registered gains of 0.1% and 0.2%, respectively, standing at 5,551.8 and 40,637.7 points.
Within this trading landscape, the Real Estate sector emerged as the steepest decliner, while the communication services sector attracted attention as the top gainer during intraday trading sessions. In the fixed income market, a prevalent decline was observed in most Treasury yields. The yield on the 10-year treasury note decreased by 1.9 basis points, settling at 3.91%, while the two-year rate saw a marginal slide of less than one basis point to 4.09%. Turning to volatility measures, the CBOE Volatility Index (VIX) witnessed a decline of 2.6%, ending the session at 14.84.
This continued retreat from the elevated levels that touched 65 recently, reflects a stabilizing market sentiment. On the economic front, fresh data from the University of Michigan revealed that the preliminary consumer sentiment index experienced an increase to 67.8 in August, compared to 66.4 in July.
This figure surpassed the expected 66.9 outlined in a survey by Bloomberg. Notably, respondents maintained one-year inflation expectations at 2.9%, consistent with July data, while five-year inflation expectations held steady at 3% for the fifth consecutive month. Additionally, housing starts have reflected a downward trend, falling by 6.8% to a seasonally adjusted annual rate of 1.24 million units in July, compared to the revised figure of 1.33 million from the previous month.
This statistic was released by the Census Bureau in conjunction with the Department of Housing and Urban Development, with previous consensus standing at 1.33 million according to a Bloomberg survey. In the energy sector, West Texas Intermediate crude oil prices fell by 1.6%, now trading at $76.90 per barrel.
This decline was primarily driven by ongoing concerns surrounding the health of China's economy, coupled with easing geopolitical tensions. Turning to corporate updates, Tapestry ($TPR) exceeded expectations with its fiscal Q4 results, projecting earnings for 2025 to rise compared to the previous year.
The positive outlook led to a 3.5% increase in its stock price, making it the top performer on the S&P 500 for the day. Investors are keenly observing how Tapestry's strategic initiatives will unfold in the upcoming fiscal period..