U.S. benchmark equity indexes demonstrated positive momentum intraday as market participants evaluated the latest macroeconomic data, including a survey revealing a rise in consumer sentiment that surpassed initial projections for August. As midday approached on Friday, the Nasdaq Composite climbed by 0.4%, reaching 17,660.5 points.
Similarly, both the Dow Jones Industrial Average and the S&P 500 experienced gains, each rising by 0.3% to 40,674.7 and 5,558.2 points respectively. Notably, sectors such as financials and communication services led the upward trajectory, whereas real estate faced the most significant decline. According to preliminary results from the University of Michigan's Surveys of Consumers, U.S.
consumer sentiment improved to 67.8 this month, up from 66.4 in July, surpassing the Bloomberg consensus forecast of 66.9. This notable increase reflected enhanced consumer expectations regarding both personal financial situations and a five-year economic outlook, which achieved its highest mark in four months, as stated by Surveys of Consumers Director, Joanne Hsu.
The survey also indicated that consumers' inflation expectations remained stable over the one- and five-year periods. In terms of housing market activity, U.S. housing starts dipped last month, primarily due to sequential reductions in single-family projects, according to reports from the Census Bureau and the Department of Housing and Urban Development.
"While it's undeniable that the previously reported data for July regarding starts and permits was considerably more disappointing than anticipated, the recent decline in mortgage rates, if it persists, could provide the residential market with some much-needed momentum moving forward," noted BMO in a recent client communication. In fixed-income markets, the U.S.
two-year yield fell by 4.1 basis points to 4.06% during the trading session, while the 10-year yield slipped 3.8 basis points to close at 3.89%. On the commodities front, West Texas Intermediate crude oil prices decreased by 1.9%, settling at $76.68 per barrel. A report from Reuters indicated that Chinese refineries made significant cuts to crude processing rates in July due to weak demand patterns. Turning to corporate developments, Tapestry ($TPR) saw its shares jump by 3.2%, positioning the luxury fashion company among the top gainers within the S&P 500.
Tapestry reported fiscal fourth-quarter results that exceeded expectations and also projected higher earnings for 2025 compared to the previous fiscal year. Madison Square Garden Entertainment ($MSGE) stocks surged by 5.5% intraday on Friday, following the company’s shift to a fiscal fourth-quarter profit year-over-year.
This turnaround was attributed to increased event-related revenue alongside stronger food and beverage sales, showcasing a double-digit growth trajectory. On a less favorable note, Palo Alto Networks ($PANW) experienced a pronounced decline on the Nasdaq and was noted as the second-worst performer on the S&P 500 index, dropping 2.8%.
The upcoming fiscal 2025 forecast will be crucial as the company gears up to report its fourth-quarter results on Monday, closely linked to its "platformization" strategy. Despite only 900 of Palo Alto's top 5,000 clients having fully adopted this new platform approach, Wedbush Securities anticipates a faster uptake in the near future. Applied Materials ($AMAT) shares fell by 1.8%, ranking among the steepest declines observed on the Nasdaq.
The semiconductor manufacturing firm had previously announced stronger-than-expected performance for its fiscal third quarter, buoyed by the rising adoption of artificial intelligence technologies. In commodities trading, gold prices advanced by 1.7%, reaching $2,535.40 per troy ounce, while silver prices also increased by 1.5%, achieving $28.84 per ounce. Overall, the market reflects an intricate interplay of economic data, corporate performance, and consumer sentiment, laying the groundwork for future trends in both equity and commodity markets..