S&P 500 Up in Big Reversal as Fed-Cut Bets Mount

About 90% of the shares in the S&P 500 rose Friday as the index reclaimed its 5,600 mark after a slide in the previous session. Tech rebounded, though smaller firms continued to outperform megacaps. Banks got hit at the start of the US earnings season, with results from Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc. failing to fuel industry momentum.Equity traders brushed off a weak reading on consumer sentiment to focus on prospects for rate cuts that could ultimately benefit Corporate America. Data also showed producer prices climbed slightly more than forecast — but categories used to calculate the Fed’s preferred inflation measure, the personal consumption expenditures price index, were not so bad.“We continue to expect the Fed to join the global rate-cutting cycle in September, with 50 basis points of easing this year,” said Mark Haefele at UBS Global Wealth Management.

The S&P 500 extended this week’s advance. The Nasdaq 100 rose 1%. The Dow Jones Industrial Average climbed back above 40,000. Nvidia Corp. led gains in big tech. Tesla Inc. rallied a day after tumbling over 8%. The Federal Communications Commission said it was investigating a massive hack of AT&T Inc. customer data.

Treasury 10-year yields declined one basis point to 4.20%. The pound is trading near its strongest level in a year versus the dollar and the highest in almost two years against the euro.

Corporate Highlights:

Boeing Co. has notified some 737 Max customers in recent weeks that aircraft due for delivery in 2025 and 2026 face additional delays, another reminder that production of its cash-cow jetliner faces a long road to recovery.
Amazon.com Inc.’s artificially intelligent shopping assistant, Rufus, is now available to all US customers following five months of testing with a subset of consumers.
Deutsche Lufthansa AG cut its profit outlook for the full year and warned that breaking even at its namesake German unit will be “increasingly challenging” as it grapples with higher unit costs and falling ticket prices.
Novo Nordisk A/S’s Ozempic was linked to lower rates of dementia and a range of other mental problems in a University of Oxford study that raises expectations about the diabetes drug’s potential ancillary benefits.
Samsung Electronics Co.’s largest union is now calling on employees at one of the company’s most advanced AI memory chip plants to walk off the job, switching tactics after their campaign for higher pay showed signs of losing steam.
Taiwan Semiconductor Manufacturing Co.’s $420 billion equity rally this year will get a valuation test next week when it reports earnings, with analysts expecting the chipmaker to raise full-year sales forecasts.

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Some of the main moves in markets:

Stocks

The S&P 500 rose 0.9% as of 11:27 a.m. New York time
The Nasdaq 100 rose 1.1%
The Dow Jones Industrial Average rose 0.8%
The Stoxx Europe 600 rose 1%
The MSCI World Index rose 0.8%

Currencies

The Bloomberg Dollar Spot Index fell 0.3%
The euro rose 0.4% to $1.0907
The British pound rose 0.6% to $1.2990
The Japanese yen rose 0.6% to 157.90 per dollar

Cryptocurrencies

Bitcoin rose 1.1% to $58,205.47
Ether rose 0.7% to $3,139.1

Bonds

The yield on 10-year Treasuries declined one basis point to 4.20%
Germany’s 10-year yield advanced three basis points to 2.50%
Britain’s 10-year yield advanced four basis points to 4.11%

Commodities

West Texas Intermediate crude rose 0.6% to $83.13 a barrel
Spot gold fell 0.2% to $2,410.50 an ounce

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