- Apple and Qualcomm boost technology sector.
- Investors look past mixed employment data.
After starting the day slightly lower, fueled by robust gains in heavyweights of the technology sector, major equity indexes in the U.S. pared their losses to wrap up the last day of the week higher.
Amid an optimistic holiday season sales forecast and the long lines of customers in front of stores to purchase the new iPhone, shares of Apple rose to $172.5, adding 2.6% on the day. Moreover, smartphone chip manufacturer Qualcomm's shares gained nearly 15% on reports of Broadcom (+6%) considering different options to buy the company.With a 0.85% daily increase, the S&P 500 Information Technology Index (SPLRCT) became the best performing sector.
Earlier in the session, the data released by the data released by the U.S. Bureau of Labor Statistics revealed that nonfarm employment rose by 261,000 in October following the dismal September reading while the unemployment rate fell to 4.1% for the first time in 17 years. However, annual wage growth disappointed the markets as it dropped to 2.4% from 2.8%. Commenting on the data, “it kind of confirms this Goldilocks-type scenario where it’s steady growth with really not a lot of inflationary pressure,” Michael Dowdall, investment strategist at BMO Global Asset Management in Chicago, told Reuters.
The Dow Jones Industrial Average added 21.28 points, or 0.09%, to 23,537.54, the S&P 500 rose 7.79 points, or 0.3%, to 2,587.64 and the Nasdaq Composite gained 48.88 points, or 0.73%, to 6,763.82. For the week, indexes gained 0.45%, 0.26% and 0.94% respectively.
Headlines from the NA session
- US Factory Orders bodes well for continued strength in business investment - Wells Fargo
- Key events for next week - Danske Bank
- J.P. Morgan sees Fed raising interest rates four times in 2018
- US ISM Non-manufacturing: New orders point to continued growth - Wells Fargo
- Fed's Kashkari: Wage growth appears to be muted
- NY Fed's GDP Nowcast edges higher to 3.2% for Q4 of 2017
- Atlanta Fed's GDPNow Q4 GDP forecast declines to 3.3%
- US NFP: jobs rebound, wages flat but should drift upward - Wells Fargo
- WTI firmer, upside stalled above $55.00
- US: ISM non-manufacturing PMI rises to 60.1 in October from 59.8 in September
- US: Service sector business activity growth remains strong in October - Markit
- US: Total nonfarm payroll employment rose by 261,000 in October
- US: Goods and services deficit at $43.5 bln in Sep, up $0.7 bln from $42.8 bln in Aug
- US: ISM non-manufacturing PMI rises to 60.1 in October from 59.8 in September
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD keeps the bearish vibe above 1.0870
The EUR/USD pair trades on a negative note during the early European session on Tuesday. The major pair moves in a narrow range between 1.0866 and 1.0876 as traders prefer to wait on the sidelines ahead of the Federal Reserve's interest rate decision on Wednesday.
USD/JPY recaptures 150.00 and beyond, BoJ's Ueda in focus
USD/JPY extends gains beyond 150.00, as the Japanese Yen stays vulnerable amid a classic 'sell the fact' trading on the hawkish BoJ decision. The BoJ lifted the interest rate to 0% for the first time since 2007 and abandoned the YCC framework. Ueda's presser awaited.
Gold price hangs near one-week low, looks to Fed decision on Wednesday for fresh impetus
Gold price struggles to capitalize on the previous day's bounce from the $2,145 region and oscillates in a range during the Asian session on Tuesday. Hawkish Fed expectations, elevated US bond yields and a bullish USD cap the upside.
Why is the crypto market crashing?
The two most important contribution to the ongoing bull market is the meteoric rise in Bitcoin due to the ETF approval and the sudden interest spike in Solana ecosystem. But the recent move suggests that the upward momentum is dissipating and a correction looms.
Lots of tension ahead of this week's Fed decision
Last week, we got a strong round of US economic data accompanied by hotter US inflation reads. The takeaway of course is that there might be a lot more pressure on the Fed to be looking to scale back its rate cut outlook at this week’s meeting.