US Stocks Rise As Tech Rebounds On Lower Treasury Yields, UAW Strikes Widen: What's Driving Markets Friday?

Wall Street is in the green on Friday, showing gains across major U.S. equity indices following significant losses on Thursday. Notably, the technology sector is leading the way, capitalizing on a retreat in Treasury yields.

This positive momentum is occurring despite hawkish comments from Federal Reserve officials earlier in the day.

Federal Reserve Bank of Boston President Susan Collins emphasized that crucial aspects of inflation, such as core services excluding shelter, have yet to demonstrate sustained improvement. Fed board member Michelle Bowman indicated that progress on inflation is likely to be slow under current conditions, hinting at the potential need for even tighter monetary policy.

The UAW has expanded its strikes to 38 locations across 20 states, targeting facilities at General Motors Company GM and Stellantis N.V. STLA while excluding Ford Motor Co. F.

Cues From Friday’s Trading

The S&P 500 index rose 0.6%, while the Nasdaq 100 soared 1%. Both blue-chip and small-cap stocks edged slightly up by 0.2%.

Upcoming Economic Data:

Minneapolis Fed President Neel Kashkari, a member of the Federal Open Market Committee, and San Francisco Fed President Mary Daly are scheduled to speak at 1 p.m. EDT.

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Stocks In Focus:

• Activision Blizzard, Inc. ATVI stock rose over 1.7% after the U.K. antitrust agency said a newly structured deal substantially addresses its concern regarding cloud gaming, potentially paving the way for the completion of the video game software publisher’s pending acquisition by Microsoft Corp. MSFT.
• United States Steel Corporation X moved higher on reports that Canadian steelmaker Stelco is considering a bid for the former.
• Hertz Global Holdings, Inc. HTZ fell over 8%, hitting the lowest level since July 2021, after Oppenheimer lowered the price target for the company.
• Alibaba Group Holding Ltd. BABA rallied 5% and PDD Holdings Inc. PDD climbed over 4% after a Bloomberg report said China is considering relaxing rules that cap foreign ownership in domestic publicly traded companies.

Commodities, Bonds, Other Global Equity Markets:

Crude oil rose 0.7%, with a barrel of WTI-grade crude trading at $90. The United States Oil Fund ETF USO was 0.4% higher to $80.70.  

Treasury yields were lower: the 10-year yield fell by 7 basis points to 4.43% and the two-year yield fell by 4 basis points to 5.11%. The iShares 20+ Year Treasury Bond ETF TLT was 0.9% higher for the day. 

The dollar slightly rose, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF UUP, up 0.1%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust FXE, was flat at 1.0657.

European equity indices closed in the green. The SPDR DJ Euro STOXX 50 ETF  FEZ rose 0.3%. 

Gold edged 0.3% higher to $1,925/oz, while silver rose 0.7% to $23.56. Bitcoin BTC/USD was flat at $26,598.

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