Stocks on the New York Stock Exchange experienced their best week so far in 2024 following a flurry of positive data showing a strong US economy. The benchmark S&P 500 jumped 6.8%, extending its seven-day rally, while the tech-heavy Nasdaq 100 ended the week relatively unchanged. The Dow Jones Industrial Averaged edged higher by 0.2%.
“This week’s reassuring inflation data has bolstered investor confidence, leading to a notable surge in market optimism,” Mark Hackett at Nationwide observed. This comes as a major turnaround after the stock market endured four consecutive weeks of losses. Gold managed to surpass the $2,500 mark per ounce, while the Treasury 10-year yields slipped three basis points to 3.88%. The dollar slipped slightly, with the Bloomberg Dollar Spot Index falling by 0.5%. The British pound strengthened 0.7% to $1.2945 while the euro gained 0.5% to $1.1024.
Following the week’s promising inflation data, the Federal Reserve is expected to consider implementing an interest rate cut at its next policy meeting in September. Bank of America claimed that the economy’s trajectory over the next few weeks will determine whether the Fed cuts rates by 50 or 75 basis points this year.