“`html
On Friday, U.S. stock indexes closed higher with the S&P 500 Index up by 0.98%, the Dow Jones Industrial Index up by 1.08%, and the Nasdaq 100 Index up by 0.77%. This recovery followed early trading volatility, driven by hopes of a Federal Reserve rate cut next month, which increased the likelihood of a cut to 63% from 35% earlier in the week. Dovish comments from New York Fed President John Williams, indicating room for a rate cut, also pushed 10-year T-note yields down to a 3-week low of 4.03%.
In economic indicators, the U.S. November S&P manufacturing PMI fell to 51.9, while the University of Michigan’s consumer sentiment index was revised up to 51.0, surpassing expectations. Additionally, inflation expectations for the next year were revised down from 4.7% to 4.5%. Meanwhile, third-quarter earnings reports indicated that 82% of S&P 500 companies exceeded forecasts with a 14.6% increase in earnings, significantly higher than the expected 7.2%.
Internationally, the Euro Stoxx 50 fell by 0.98%, and China’s Shanghai Composite dropped by 2.45%. In the UK, retail sales fell by 1.0% m/m, worse than the expected 0.5%. The markets are now anticipating a 3% chance of a 25 basis point rate cut by the ECB at its next meeting.
“`
