Global economic optimism rises as trade talks resume and U.S. banks pass stress tests, while inflation data from Germany aligns with ECB targets.
XLF posted modest gains Friday, supported by macroeconomic tailwinds including a finalized U.S.–China trade agreement on rare earth shipments and new executive actions to accelerate U.S. AI development. Visa, Mastercard, AmEx, Blackstone, and BlackRock contributed positively to XLF.
IBB edged lower amid sector-wide pressure following Sarepta Therapeutics' suspension of ELEVIDYS gene therapy trials due to two fatal adverse events. Notable holdings including AMGN, MRNA, also registered losses, offset slightly by Gilead's gains on favorable policy developments.
Consumer Discretionary advanced alongside new highs in the S&P 500 and Nasdaq. A U.S.-China trade agreement improved sentiment, while Nike’s post-earnings rally provided a major lift to XLY. Amazon and McDonald’s also contributed to sector strength amid broader rotation beyond tech.
Tech stocks edged lower in step with the broader market, as the S&P 500 dipped modestly. A finalized U.S.-China agreement on rare earth shipments offered a potential long-term tailwind for the sector. Microsoft, Broadcom, and Marvell contributed to the day’s weakness.
U.S. Economy Slows with Falling Personal Income and Consumer Spending, While Europe Faces Rising Inflation Amid Stabilizing Geopolitical Landscape.
Consumer Discretionary stocks advanced as the U.S. dollar hit its lowest level since March 2022, easing global financial conditions. Durable goods orders surprised to the upside, signaling resilient demand. Amazon led gains on bullish sentiment, while Nike rose ahead of earnings.
The financial sector advanced despite a Q1 GDP contraction of 0.5%, as stronger-than-expected durable goods data signaled resilience in manufacturing-linked segments. Goldman Sachs hit an all-time high, while JPMorgan also posted gains, contributing to XLF’s upward move.
The tech sector strengthened amid a weaker U.S. dollar and dovish Fed signals, which lifted global risk appetite. Micron’s earnings beat and NVIDIA’s continued AI traction led gains, while Broadcom faced insider selling. Arista Networks rose to a six-week high.
US Dollar Weakens to Near 97.00 Amid Tensions Over Interest Rates and Mixed Economic Data.
U.S. Stock Markets Consolidate After Gains Amid Mixed Economic Signals and Fed's Steady Rate Policy.
The biotech sector moved higher in line with broader equity gains, supported by easing geopolitical tensions and dovish Fed commentary. Amgen weighed on performance after mixed obesity treatment results, while Vertex saw support from new policy focus on non-opioid pain relief.
