US benchmark equity indexes experienced a positive rally on Friday, buoyed by insightful remarks from Federal Reserve Chair Jerome Powell and the latest official report detailing US job growth for February. The Nasdaq Composite saw a modest rise of 0.4%, closing at 18,137.9, while the S&P 500 added 0.3%, reaching 5,755.9.
The Dow Jones Industrial Average also climbed by 0.3%, closing at 42,700.9. Notably, both the utilities and energy sectors emerged as the top gainers, while consumer staples faced the most significant downturn. In the bond market, there was an uptick in US Treasury yields, with the 10-year rate increasing approximately 3.2 basis points, settling at 4.3%, and the two-year rate rising by 3.3 basis points to 4%.
In commodities, April West Texas Intermediate crude oil saw a 1% increase, closing at $67.05 a barrel on Friday. In a significant statement regarding the economy, Powell emphasized that the Federal Open Market Committee is approaching decisions regarding interest rates with caution. He suggested that they would seek "greater clarity" concerning the changes in policy introduced by the Trump administration. "As we parse the incoming information about policy changes, we are focused on separating the signal from the noise as the outlook evolves," Powell articulated, highlighting the importance of careful analysis during this period of economic transition. The report from the Bureau of Labor Statistics revealed that the US nonfarm payrolls increased by 151,000 in February.
However, this came with a slight rise in the unemployment rate, which climbed to 4.1%, compared to the previous rate of 4% in January. Turning to company-specific news, Broadcom ($AVGO) stocks soared over 8%, marking it as the standout performer on the S&P 500. The chipmaker provided an optimistic fiscal Q2 revenue forecast that exceeded analysts' expectations after delivering strong Q1 results. Oruka Therapeutics ($ORKA) saw its shares climb nearly 4% as the company released preclinical data indicating that its monoclonal antibody ORKA-002 supports the potential for extended dosing intervals, demonstrating equivalent efficacy to bimekizumab in the treatment of plaque psoriasis. In a contrast of fortunes, Hewlett Packard Enterprise ($HPE) shares fell by 11% following the announcement of plans to achieve approximately $350 million in run-rate cost savings through workforce reductions by the fiscal year 2027.
Meanwhile, Costco Wholesale ($COST) shares dropped 6%, as the retailer's fiscal Q2 net income did not meet analyst consensus expectations disclosed late Thursday. In the precious metals market, gold prices dipped 0.4%, settling at $2,915.9 per troy ounce, while silver also declined by 1.2%, closing at $32.94 per troy ounce..