(Bloomberg) – Stocks rose sharply on Friday after strong earnings from tech giants, with investors banking on U.S. jobs data expected to support interest rate cut expectations and signal further cooling in the labor market. was.
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Wall Street looked to build on Thursday’s gains, with S&P 500 contracts rising 0.5% and tech-heavy Nasdaq 100 contracts rising 1%. Meta Platforms soared 15% in after-hours trading, while Amazon.com Inc rallied after the tech giant’s quarterly profit beat expectations. Apple fell after showing weak performance in China.
Europe’s Stoxx 600 index was buoyed by positive earnings news, with Swedish consumer electronics maker Electrolux AG soaring 6% and Vallourec SACA surging 9% in the Paris market. The picture was more complicated in Asia, where China’s main benchmarks avoided sharp declines in a volatile session. A broader look at stocks in the region rose 0.7%.
Investors will analyze the monthly U.S. jobs report later Friday for evidence of further cooling in the labor market that could prompt the Federal Reserve to ease borrowing costs. Employers are expected to add jobs at a slower pace in January, but economists at Bloomberg expect the unemployment rate to rise to 3.8% from 3.7% in December.
U.S. Treasuries were firm after Thursday’s rally pushed the 10-year Treasury yield down 3 basis points. The dollar index fell.
During choppy trading in Chinese markets on Friday, the Shanghai Composite Index fell by about 4% on declines in healthcare and tech stocks, with some market observers attributing the losses to selling ahead of the Lunar New Year holiday. That’s what I was thinking. After that, the decline narrowed to 1.5%.
“China needs to resolve its asset crisis before it can regain investor confidence,” said Kieran Calder, head of Asian equities research at Union Bancair Privy. “Until that happens, it’s a market for short-term traders.”
Meanwhile, Japan’s Aozora Bank fell 16%, taking its weekly decline to more than 30% after it said it would report its first loss in 15 years due to bad loans related to U.S. real estate.
U.S. investors will continue to closely track developments in regional banks. The U.S. regional financial index is on pace for its worst week since May last year in the aftermath of the banking crisis. New York Community Bancorp shares fell 11% on Thursday, adding to the previous day’s record 38% drop and closing at their lowest since 2000. NYCB shocked investors this week by cutting its dividend, posting a quarterly loss and increasing its loan loss reserves.
Elsewhere, oil ended a two-day slide, while gold was little changed. Bloomberg News reported that negotiations are progressing toward an agreement that would suspend the Israel-Hamas war and release civilian hostages.
The main movements in the market are:
stock
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As of 8:24 a.m. London time, the Stoxx European 600 was up 0.4%.
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S&P 500 futures rose 0.5%
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Nasdaq 100 futures rose 0.9%
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Dow Jones Industrial Average futures little changed
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MSCI Asia Pacific Index rose 0.7%
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MSCI Emerging Markets Index rose 0.9%
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0881.
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The Japanese yen fell 0.2% to 146.66 yen to the dollar.
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The offshore yuan was little changed at 7.1894 yuan to the dollar.
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Sterling rose 0.1% to $1.2760.
cryptocurrency
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Bitcoin fell 0.2% to $43,008.28.
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Ether rose 0.3% to $2,310.97
bond
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The 10-year government bond yield was almost unchanged at 3.89%.
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Germany’s 10-year bond yield rose 2 basis points to 2.17%.
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UK 10-year bond yields rose 4 basis points to 3.79%.
merchandise
This article was produced in partnership with Bloomberg Automation.
–With assistance from Abhishek Vishnoi, Ishika Mookerjee, and Richard Henderson.
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