ASX set to rise as Wall Street extends winning streak

Smaller company stocks had some of the biggest gains. The Russell 2000 index rose 1.8 per cent.

A majority of stocks in the S&P 500 gained ground, but those gains were kept in check by slumps for several big technology companies.

Nvidia fell 3.2 per cent. Its pricey valuation makes it among the heaviest influences on whether the broader market gains or loses ground. The company has grown into a nearly $US3.6 trillion ($5.5 trillion) behemoth because of demand for its chips used in artificial-intelligence technology.

Intuit, which makes TurboTax and other accounting software, fell 5.7 per cent. It gave investors a quarterly earnings forecast that fell short of analysts’ expectations.

Facebook owner Meta Platforms fell 0.7 per cent following a decision by the Supreme Court to allow a multibillion-dollar class action investors’ lawsuit to proceed against the company. It stems from the privacy scandal involving the Cambridge Analytica political consulting firm.

All told, the S&P 500 rose 20.63 points to 5,969.34. The Dow climbed 426.16 points to 44,296.51, and the Nasdaq picked up 42.65 points to close at 2,406.67.

European markets closed mostly higher and Asian markets ended mixed. Crude oil prices rose.

Treasury yields held relatively steady in the bond market. The yield on the 10-year Treasury fell to 4.41 per cent from 4.42 per cent late Thursday.

In the crypto market, bitcoin hovered around $US99,000, according to CoinDesk. It has more than doubled this year and first surpassed the $US99,000 level on Thursday.

Retailers remained a big focus for investors this week amid close scrutiny on consumer spending habits headed into the holiday shopping season. Walmart, the nation’s largest retailer, reported a quarter of strong sales and gave investors an encouraging financial forecast. Target, though, reported weaker earnings than analysts’ expected and its forecast disappointed Wall Street.

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Consumer spending has fueled economic growth, despite a persistent squeeze from inflation and high borrowing costs. Inflation has been easing and the Federal Reserve has started trimming its benchmark interest rates. That is likely to help relieve pressure on consumers, but any major shift in spending could prompt the Fed to reassess its path ahead on interest rates. Also, any big reversals on the rate of inflation could curtail spending.

Consumer sentiment remains strong, according to the University of Michigan’s consumer sentiment index. It revised its latest figure for November to 71.8 from an initial reading of 73 earlier this month, though economists expected a slight increase. It’s still up from 70.5 in October.

The survey also showed that consumers’ inflation expectations for the year ahead fell slightly to 2.6 per cent, which is the lowest reading since December of 2020.

Wall Street will get another update on how consumers feel when the business group The Conference Board releases its monthly consumer confidence survey on Tuesday.

A key inflation update will come on Wednesday when the US releases its October personal consumption expenditures index. The PCE is the Fed’s preferred measure of inflation and this will be the last PCE reading prior to the central bank’s meeting in December.

AP

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