Wall Street closes mixed, but higher for the week

May 10, 202420:27 UTC

SPX

DJI

IXIC

GOLD

Key points:

Dow, S&P 500 end slightly green; Nasdaq slips
Tech, Staples lead S&P 500 sector gainers
Energy, Cons Disc weakest groups
Dollar edges up; gold gains; crude falls >1%; bitcoin down >3%
U.S. 10-Year Treasury yield rises to ~4.50%

WALL STREET CLOSES MIXED, BUT HIGHER FOR THE WEEK

Wall Street shares ended mixed on Friday, but with all three indexes extending weekly win streaks ahead of crucial inflation data next week.

The S&P 500 SPX and the Dow DJI were moderately higher on Friday, while the Nasdaq IXIC closed slightly down on the day.

The SPX and Nasdaq are now up three weeks in a row. The DJI has gained for four-straight weeks. With this, the blue-chip Dow posted its largest Friday-to-Friday percentage rise since mid-December. It is also now up eight-straight days.

Federal Reserve officials, meanwhile, dominated the economic and market news wires on Friday, as debate intensified over whether U.S. interest rates are high enough. For instance, Dallas Fed President Lorie Logan said it may be too early to think about cutting rates.

Comments from Fed officials came amid data on Friday that provided further evidence that inflation remains elevated. Year-ahead inflation expectations in the University of Michigan's survey of consumer sentiment rose from 3.2% to 3.5% in May, the highest level since November, and longer-term expectations ticked up as well.

Overall, however, consumer sentiment sank to a six-month low in May amid growing anxiety about inflation, unemployment and interest rates.

Next week's inflation numbers will be front and center in financial markets. Wall Street economists estimate a 0.4% rise in headline CPI and a 0.3% rise in core, according to a Reuters poll.

"Four strong core CPI prints in a row will likely spoil the chances of a summer cut by the Fed," wrote Wells Fargo in a research note led by Michael Schumacher, head of macro strategy.

"Even a benign print will likely only give the central bank incremental confidence as our economics team thinks the Fed will need to see at least three benign core inflation prints before easing policy."

First-quarter earnings season is also fast winding down. Of the 459 of the companies in the S&P 500 that have reported, 77% delivered consensus-beating results, according to LSEG data.

Here's a snapshot of asset prices across financial markets:

(Gertrude Chavez-Dreyfuss)

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