US stocks made a comeback on Friday, with Wall Street looking to recover from the Dow’s largest drop in over a year. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all saw gains, with renewed interest rate concerns driving Thursday’s sell-off.
The Federal Reserve’s path on interest rates came into question after stronger-than-expected US business data was released, leading to uncertainty among traders. The CME FedWatch tool showed a split among traders on whether the central bank will cut rates at its September meeting, a significant shift from previous expectations.
Despite the recent market volatility, Nvidia saw a slight increase in its stock price on Friday, with its upcoming stock split generating interest among retail investors. Additionally, a revised look at the University of Michigan’s consumer sentiment index for May was set to be released, providing insight into Americans’ views on the economy.
Investor sentiment was also highlighted in a survey by JP Morgan, with expectations for stocks to have the highest returns in 2024. The majority of investors believed the next move from the Federal Reserve would be a rate cut, with geopolitical turmoil and inflation cited as the biggest threats to markets.
As Wall Street headed into the holiday weekend, investors were cautiously optimistic about the market outlook, with hopes for a rebound from recent losses. The stock market’s resilience in the face of uncertainty reflected the ongoing volatility and unpredictability of the current economic landscape.
