S&P 500 and Nasdaq Extend Weekly Gains Amid Rate Path Uncertainty

Barry Adams
17 May, 2024
New York City

Stocks and benchmark indexes rested in early trading on Friday, and the yield on U.S. Treasury notes rebounded. 

The bond yield edged higher after three Federal Reserve officials stressed the need for higher interest rates until more evidence emerges indicating that inflation is trending towards the 2% target rate. 

The S&P 500 and the Nasdaq Composite traded at new highs in Wednesday's trading, and benchmark indexes traded down on Thursday and extended the weakness in Friday's trading. 

Market indexes are hovering near record highs amid widespread beliefs that inflation is not likely to rebound in the months ahead, providing enough elbow room for policymakers to cut rates twice in the second half of the year. 

However, rate-cut optimism may be misplaced if wages continue to rise above 4% and service sector inflation hovers close to 4%. 

Moreover, home prices are still rising at a rapid pace across the nation, contributing to overall inflationary forces. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.1% to 5,294.90, and the Nasdaq Composite fell 0.1% to 16,682.22. 

The yield on 2-year Treasury notes edged higher to 4.81%, 10-year Treasury notes increased to 4.41%, and 30-year Treasury bonds edged higher to 4.54%.

WTI crude oil increased $0.01 to $79.24 a barrel, and natural gas prices increased 2 cents to $2.51 a thermal unit.

Gold increased by $10.74 to $2,388.44 an ounce, and silver rose 9 cents to $29.77. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.75.

 

U.S. Stock Movers

Take Two Interactive declined 0.7% to $145.05 after the online game developer said Grand Theft Auto is now scheduled for its next release in the fall of 2025. 

Total net revenue in the fiscal fourth quarter declined to $1.399 billion from $1.44 billion, net loss expanded to $2.9 billion from $610 million, and diluted loss per share soared to $17.02 from $3.62 a year ago. 

GameStop Corp. declined 21.6% to $21.70 after the video game retailer posted weaker-than-expected preliminary quarterly results. 

Revenue in the fiscal fourth quarter ending on February 3 declined to $1.794 billion from $2.226 billion, and net income increased to $63.1 million from $48.2 million a year ago, respectively. 

The specialty retailer also plans to sell as many as 45 million shares in a secondary offering.