"U.S. stocks ended a volatile week on a positive note, with the S&P 500 rebounding after its steepest single-day decline since April. Investor sentiment improved early in the week as signs of easing tensions between the U.S. and China helped calm global markets. Additional support came from dovish comments by Federal Reserve officials and a wave of merger and acquisition activity in the artificial intelligence (AI) sector."
"Earnings season kicked off strongly, led by major banks such as JPMorgan Chase, Citigroup, and Wells Fargo, all of which reported results that exceeded expectations. Of the roughly 12% of S&P 500 companies that had reported by Friday, an impressive 86% beat earnings forecasts, according to FactSet. This helped buoy optimism despite lingering concerns over credit risks in the regional banking sector."
"Federal Reserve Chair Jerome Powell reaffirmed expectations for another interest rate cut later this year, citing "downside risks to employment" even as inflation remains above the central bank's target. Supporting this outlook, the Fed's Beige Book highlighted subdued consumer spending, stable employment levels, and moderate wage growth. Treasury yields fell across maturities, with the 10-year yield reaching its lowest level in 12 months as investors sought safety amid economic uncertainty."
U.S. stocks closed the week higher as the S&P 500 rebounded from its steepest single-day drop since April. Investor sentiment improved on easing U.S.-China tensions, dovish Federal Reserve comments, and merger activity in the AI sector. Major banks including JPMorgan Chase, Citigroup and Wells Fargo reported earnings above expectations, and 86% of the roughly 12% of S&P 500 companies that had reported beat forecasts. Federal Reserve Chair Jerome Powell reiterated expectations for another rate cut later this year amid downside risks to employment. The Fed's Beige Book noted subdued consumer spending and moderate wage growth. Treasury yields fell to 12-month lows. European markets were mixed while the UK posted modest GDP growth in August.
Read at London Business News | Londonlovesbusiness.com
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