Albany [New York], January 4: U.S. stocks ended higher on Friday, following stronger-than-expected manufacturing data and an optimistic economic outlook shared by Richmond Fed President Tom Barkin.
The Dow Jones Industrial Average rose 339.86 points, or 0.80 percent, to 42,732.13. The S&P 500 added 73.92 points, or 1.26 percent, to 5,942.47. The Nasdaq Composite Index increased 340.88 points, or 1.77 percent, to 19,621.68.
All of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and technology leading the gainers by going up 2.42 percent and 1.62 percent, respectively. Materials posted the weakest growth, up by 0.03 percent.
The Institute for Supply Management (ISM) said on Friday that its manufacturing purchasing managers' index (PMI) increased to 49.3 in December 2024, the highest reading since March, up from 48.4 in November, with production rebounding and new orders rising further.
Barkin also has an upbeat outlook on the economy for the year ahead. "With what we know today, I expect more upside than downside in terms of growth," Barkin said, adding that expectations for economic expansion are likely behind a recent uptick in business optimism.
Tech stocks spearheaded Friday's market recovery, with Tesla rebounding 8.22 percent following news that its sales in China reached a record high in 2024. The positive report helped reverse Thursday's 6 percent slide, which had been triggered by Tesla's first-ever annual decline in global sales.
Nvidia also contributed significantly to the tech sector's rally, rising more than 4 percent after a strong performance the previous day. The semiconductor giant continues to benefit from investor enthusiasm for artificial intelligence and advanced computing technologies.
Meanwhile, shares of the U.S. Steel fell 6.53 percent on Friday after President Joe Biden blocked a proposed 14.9 billion U.S. dollars acquisition by Japan's Nippon Steel.
In the bond market, the 30-year U.S. Treasury yield climbed 1.8 basis points to 4.815 percent, marking its highest level since April 2023. This was the 30-year yield's third consecutive daily increase and its fourth straight week of gains, reflecting ongoing adjustments to robust economic indicators.
Despite some uncertainties, the market continues to digest key economic data while preparing for the upcoming corporate earnings season.
Source: Xinhua News Agency
