Stocks gain, 10-year yield drops below 4%

US stocks rallied on Friday, capping off a big weekend, while bond yields retreated slightly from their recent run.

At the close, the S&P 500 had (^GSPC) jumped 1.6%, while the Dow Jones Industrial Average (^ DJI) increased by 1.1%. Contracts on the technology-intensive Nasdaq Composite (^IXIC) jumped almost 2%.

The yield on the benchmark 10-year US Treasury note (^TNX) moved back and forth around the key 4% level on Friday, eventually settling below the line, after services data showed economic activity increased in February.

Crude Oil traded higher, with US benchmark WTI (CL=F) at $79.71 per barrel.

In terms of economic data, economic activity in the services sector increased in February for the second consecutive month, the ISM Services PMI came in at 55.1, slightly lower than the 55.2 recorded in January and above economists’ expectations of 54.5.

February’s ISM Services figures “suggest that activity continues to expand at a reasonably healthy pace, but provide further reason to doubt the idea that there has been a resumption of growth since the start of the year,” said Andrew Hunter, deputy chief U.S. economist at Capital Economics. , wrote in a note after the publication.

Movements come later the Federal Reserve released a semi-annual monetary policy report to Congress that details the central bank’s plans to raise interest rates as a means of restoring price stability.

Officials indicated “continued increases in the target range will be appropriate to achieve a monetary policy stance tight enough to bring inflation down to 2% over time,” the Fed said in its statement. report.

Shares rallied thursdaythe S&P 500 trading lower for most of the session before rallying after comments from Atlanta Federal Reserve Chairman Raphael Bostic.

Bostic said he’s still open to rate increases by another quarter of a percentage point at the central bank’s March meeting. “I let myself be guided by the data,” Bostic told reporters during a press briefing. “If the data continues to suggest the economy is stronger than I had expected, I will adjust my policy course.”

Federal Reserve Bank of Atlanta President Raphael Bostic speaks from Atlanta during a webinar sponsored by the 12 regional Fed banks to address the lack of racial disparity in the economy on Tuesday, 13 April 2021. (AP Photo)

Bostic, who is not a voter on monetary policy this year, wrote a test wednesday calling on the Fed to raise its key rate by 50 basis points to a range of 5% to 5.25%, then to maintain it until 2024.

Fed officials raised the benchmark rate by a quarter of a percentage point in February, bringing the target to a range of 4.5% to 4.75%. Policymakers will release new projections after the March 21-22 central bank meeting.

In simple action movements, (AI) shares jumped more than 30% on Friday after the company reported third-quarter revenue of $66.7 million, beating analysts’ expectations of $64.2 million.

Rivian Shares (SHORE) jumped after the electric vehicle maker said on Friday that it remained to original production forecast of 50,000 vehicles in 2023.

Cosco (COST) shares fell 2% after bulk retailer posted mixed results for the second quarter. Total revenue for its latest quarter was $55.27 billion, slightly below analysts’ expectations of $55.58 billion. During the earnings call, the company provided hopeful news on the inflation front.

Charging point (CHPT) shares were down on Friday after the maker of electric vehicle charging stations announced disappointing results and issued more flexible guidelines.

Amazon Stocks (AMZN) rose 3% as the company suspended construction of its second quarter in Arlington, Va. The move follows the tech giant’s job cut announcements in the wake of slowing consumer and business spending.

Marvell technology (MURLY) the stock fell after the company reported mixed results, with earnings in line with expectations but forecasts weaker than expected.

Shares of meta-platforms (META) jumped 6% while the company announced it would reduce the prices of its Quest Pro virtual reality headset after the product launch.

In the cryptocurrency market, both Bitcoin (BTC) and Ether (ETH) fell when customers withdrew their funds from silvergate crypto bank (AND), whose title plunged more than 57% during Thursday’s trading session. Following Bitcoin’s fall, the pullback is close to 10% and the digital asset was on course to close below its 50-day moving average for the first time in nearly two months, according to data from Bespoke Investment. Group.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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