Market Snapshot: U.S. stocks climb after China rate cut, as Dow heads for 8th straight losing week


U.S. stocks were attempting to end another brutal week with a bounce on Friday, with sentiment getting a lift from a cut in one of China’s key lending rates, though the Dow Jones Industrial Average remained on track for its longest weekly losing streak since 1932.

How are stocks trading?
  • The Dow Jones Industrial Average

    rose 206 points, or 0.6%, to 31,460.
  • The S&P 500

    was up 32 points, or 0.8%, at 3,933.
  • The Nasdaq Composite

    gained 112 points, or 1%, to trade at 11,501.

On Thursday, the Dow industrials and S&P 500 booked their lowest closes since March 2021, according to Dow Jones Market Data. The Dow finished more than 15% below its Jan. 4 record finish, while the S&P 500 ended 18.7% below its Jan. 3 record —- not far off the 20% threshold that marks a bear market.

Read: Selloff puts S&P 500 on bear market’s doorstep. If history is a guide, there’s more pain ahead.

What’s driving markets?

Wall Street took a cue from a strong Asian session, where the Hong Kong Hang Seng

rallied 2.9% and the China CSI 300 index

gained 1.9%.

The People’s Bank of China on Friday cut in its rate on five-year loans, aimed at shoring up weak housing sales by cutting mortgage costs. The country has been battling COVID outbreaks, with lockdowns in industrial hubs such as Shanghai blamed for weak factory and consumer activity data in April.

“The news out of China and the successful test of the S&P 500 holding support is poised to pull the index out of the danger zone. We reiterate; for now, we think the market has placed in a bottom,” Peter Cardillo, chief market economist at Spartan Capital, told clients in a note.  

He noted the index came close to that support level of 3,850, but didn’t get there, instead hovering around 3,860.

Major U.S. stock indexes are likely facing yet another week of losses. The Dow industrials is set for its eighth-straight weekly loss, which would be its longest since April 1932, according to Dow Jones Market Data.

Losses have come amid concerns about whether soaring inflation can be brought under control by the Federal Reserve without derailing the economy.

Major retailers this week, such as Walmart

and Target

reported disappointing profits, against a backdrop of rising expenses and inflation.

Read: Swiss running shoe company On Holding runs with premium pricing despite inflation

The U.S. economic data calendar is empty for Friday, but next week will bring another round of inflation data, personal consumption expenditure prices excluding food and energy.

Which companies are in focus
How are other assets trading?
  • The yield on the 10-year Treasury note 

    edged down 0.5 basis point to 2.848%. Yields and debt prices move opposite each other.
  • The ICE U.S. Dollar Index 

    rose 0.2%
  • Bitcoin 

    was off 0.8% near $30,100.
  • Oil futures rose, with the U.S. benchmark 

    up 0.7% near $111 a barrel. Gold futures 

    were flat near $1,841.
  • The Stoxx Europe 600 

     rose 1.4%, while London’s FTSE 100 

    rose 1.7%.

Bond Report: Treasury yields hold steady, with 10-year rate below 2.9%, as U.S. stock-market indexes open higher

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