The S&P 500 Index closed up 0.70% on Friday, August 4, 2023, marking a one-week high, alongside a 0.53% increase in the Dow Jones Industrial Average and a 0.60% rise in the Nasdaq 100 Index. Amazon.com led the gains among major tech stocks with a surge of over 15%, following its cloud unit’s strongest quarterly revenue growth in five years, reaching $42.23 billion.
Despite better-than-expected U.S. economic data, including a 0.9% rise in the Q2 employment cost index, and hawkish comments from Dallas Fed President Lorie Logan, who indicated inflation trends above the target, bond yields rose sharply. The 10-year Treasury note yield hit a 1.5-year high of 4.75%. Additionally, the market anticipated a 67% chance of a 25 basis point interest rate hike at the upcoming FOMC meeting on September 15-16.
Internationally, the Euro Stoxx 50 climbed to a 3.5-week high, with Japan’s Nikkei-225 seeing a significant rise of 4.03%. However, weak Chinese economic indicators pointed to a decline in global growth prospects, with China’s July manufacturing PMI dropping to 49.2, below expectations of 50.1.
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