NEW YORK, Jan 18 (Bernama-Xinhua) -- US stocks ended higher on Friday, driven by gains in big tech and chip companies, reported Xinhua.
The Dow Jones Industrial Average rose 334.70 points, or 0.78 per cent, to 43,487.83. The S&P 500 added 59.32 points, or 1.00 per cent, to 5,996.66. The Nasdaq Composite Index increased 291.91 points, or 1.51 per cent, to 19,630.2.
Nine of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and technology leading the gainers by going up 1.71 per cent and 1.65 per cent, respectively. Meanwhile, health and real estate led the laggards by dropping 0.67 per cent and 0.04 per cent, respectively.
Nvidia rose by 3.1 per cent, while Broadcom climbed 3.5 per cent after Barclays raised price targets on both stocks, pushing the PHLX Semiconductor Index up by 2.86 per cent. Intel surged 9.25 per cent amid takeover speculation, and Qorvo soared by 14.43 per cent after activist investor Starboard Value disclosed a 7.7 per cent stake in the company.
Economic data added to the market's momentum. The Commerce Department reported that single-family homebuilding hit a 10-month high, though rising mortgage rates and an oversupply of new properties could temper demand. Meanwhile, manufacturing output showed a strong rebound last month.
While stocks faltered last month on hawkish Fed signals, recent data showing cooling inflation reignited bets on rate cuts.
"This week's easing inflation data and a positive reaction to earnings from several financial companies resulted in a bond and stock rally," said Craig Johnson at Piper Sandler.
"Recent short-term oversold conditions and weak bullish sentiment are underpinning the recovery of the major indices from within their primary uptrends."
Comments from Federal Reserve officials presented a mixed outlook on monetary policy. Cleveland Fed President Beth Hammack highlighted persistent inflation concerns despite signs of economic resilience. However, Fed Governor Christopher Waller suggested rate cuts could come sooner and faster than expected as inflation continues to ease. Markets now see a greater than 50 per cent chance of a rate cut by June, while the Fed is widely anticipated to hold rates steady at its next meeting.
After the Martin Luther King Jr. holiday on Monday, Wall Street is poised to enter a new chapter as Donald Trump begins his second term as president of the United States. Investors will closely watch how his administration's policies impact markets, with particular focus on potential shifts in trade, regulation, and fiscal measures.
"We continue to view US equities as attractive, forecasting that 9 per cent earnings growth this year will drive the S&P 500 to 6,600 by the end of the year," said Mark Haefele at UBS Global Wealth Management.
"Large-caps should outperform mid- and small-caps given their greater AI exposure, better earnings trends, and less dependency on Fed rate cuts."
-- BERNAMA-XINHUA
