In a notable upward trend, US benchmark equity indexes experienced gains on Friday, fueled by the anticipation that a government shutdown could be averted. Stifel noted, "The market appears optimistic the US government can avoid a shutdown (Friday night) after Senate Democratic Leader Chuck Schumer reportedly dropped his objection yesterday to the latest spending bill proposal." However, the economic backdrop is complex, with US consumer sentiment plummeting to 57.9 in March, a significant drop from the previous month's 64.7.
These preliminary findings, conducted by the University of Michigan, defied the Bloomberg-compiled consensus, which had predicted a figure of 63. On the commodities front, April West Texas Intermediate crude oil surged by $0.63, closing at $67.18 per barrel. Meanwhile, May Brent crude, recognized as the global benchmark, was seen increasing by $0.68 to settle at $70.56.
This rise comes as tensions mount with Russia, which is perceived to have rejected a US-backed ceasefire in Ukraine, consequently diminishing the likelihood of lifted sanctions on Moscow and the complete reintegration of Russian oil into international markets. Moreover, beauty retail giant Ulta Beauty ($ULTA) reported a remarkable increase of over 13% in its stock value.
Despite the company’s full-year guidance falling short of Wall Street's expectations late Thursday, UBS highlighted the potential for positive earnings revisions in the upcoming quarters, invigorating investor confidence. Conversely, Abbott Laboratories ($ABT) saw a decline of 2.2% in its shares after a state appeals judge in Missouri mandated a retrial regarding a civil lawsuit pertaining to its formula milk, casting a shadow over its market performance. These developments underscore the mixed signals in the current economic landscape, where optimism about political actions contrasts with fluctuations in consumer sentiment and commodity prices..