Stock Market Update: Indexes Rise as Consumer Sentiment Improves
Major U.S. indexes rose at midday Friday as a report on consumer sentiment showed inflation expectations fell to their lowest level since the end of 2020. The Dow, S&P 500, and Nasdaq all gained, indicating positive market sentiment.
Etsy Shares Climb on Tariff Exemption Limitations
Etsy (ETSY) shares climbed as the Biden administration took steps to limit tariff exemptions that often benefit Chinese e-commerce companies. This move is seen as a positive development for domestic e-commerce platforms like Etsy. As a result, U.S.-listed shares of Alibaba Group (BABA) and Temu parent PDD (PDD) experienced a decline in their stock prices.
Uber Expands Partnership with Waymo
Shares of Uber Technologies (UBER) advanced after the ride-share provider announced its plans to expand its partnership with Alphabet-owned (GOOGL) autonomous vehicle technology firm Waymo. This expansion will allow Uber to offer driverless car rides in Austin, Texas, and Atlanta, Georgia. The news also had a positive impact on Alphabet shares, which saw an increase in their stock prices.
Adobe Shares Slump on Disappointing Outlook
Adobe (ADBE) shares slumped after the software maker provided weaker-than-expected guidance for the fiscal fourth quarter, despite reporting strong-than-expected results for the third quarter. This disappointing outlook led to a decline in Adobe’s stock prices.
Moderna Stock Drops on R&D Budget Cut
Shares of Moderna (MRNA) dropped as JPMorgan downgraded the stock following the vaccine maker’s announcement that it was slashing its research and development budget. This decision raised concerns among investors about the company’s future growth and innovation, resulting in a decline in Moderna’s stock prices.
Market Trends
In addition to the individual stock movements, there were several notable market trends. Oil and gold futures rose, indicating increased demand and potential inflation concerns. The yield on the 10-year Treasury note declined, suggesting a decrease in investor confidence. The U.S. dollar lost ground to major currencies like the euro, pound, and yen, reflecting a weaker dollar. Furthermore, prices for most major cryptocurrencies climbed, highlighting continued interest and investment in the digital asset market.
Overall, the stock market experienced a mix of positive and negative movements, driven by various factors such as consumer sentiment, government policies, company outlooks, and market trends. Investors should closely monitor these developments and consider their potential impact on their investment portfolios.
Sources:
- Investopedia – Report on Consumer Sentiment
- Investopedia – Limitations on Tariff Exemptions
- Investopedia – Uber’s Expansion with Waymo
- Investopedia – Adobe’s Disappointing Outlook
- Investopedia – Moderna’s R&D Budget Cut
Read the original article on Investopedia.