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US stocks rose to an advanced closing level at the end of monthly trading, Friday, while benchmark Treasury yields fell at the end of a week marked by strong business results. The Dow Jones Industrial Average closed up 272, or 2.5%, in April. The S&P achieved a monthly gain of 1.5% for the second positive month in a row, while the Nasdaq ended the month with a slight increase of only 0.04%.
European stocks also achieved an increase at the end of trading, after corporate profits and the rise in oil stocks helped the European Stoxx 600 index to overcome the gloomy euro zone data and the decline in bank stocks. The European Stoxx 600 index rose 0.6%, recording an increase of 1.9% this month. Japanese stocks extended gains for the second session, reaching their highest levels in more than 8 months.
US stocks rose to a closing high on Friday, and benchmark Treasury yields fell at the end of a week marked by strong business results. The markets concluded a positive month with data confirming that inflation is on the way to moderation, which may allow the Federal Reserve to catch its breath, albeit temporarily, amid expectations of raising interest rates again next week.
The Dow Jones index closed at a height of 272 points, on Friday, to record its highest monthly gain since last January, with a growth of 2.5% in April. And “S&P” achieved monthly gains of 1.5% for the second positive month in a row, helped by profits that exceeded expectations for giant companies, including “Alphabet”, “Microsoft” and “Meta”. While the Nasdaq index ended the month with a slight increase of only 0.04%.
On a weekly basis, “Nasdaq” witnessed its largest gain, by 1.3%, while “Dow” and “Standard & Poor’s” ended the week, up by approximately 0.9%.
Meanwhile, the Vix volatility index, also known as the “Wall Street fear gauge,” closed down 7.34% at 15.78 points, the lowest closing level since November 2021.
“It’s the final day of a relatively strong month, and it comes with a really impressive quarterly results season,” said Ryan Dietrick, chief market strategist at Carson Group. I have seen some large companies increase their profits, which softens the talk that we are on the direct path to recession.
The main indices on “Wall Street” closed higher on Friday, after the strong results of Exxon and Intel erased the impact of fears raised by Amazon’s warning of a slowdown, while economic data reinforced expectations that the Federal Reserve (the US central bank) will raise interest rates next week.
Exxon Mobil shares hit an all-time high after the oil company made record first-quarter profits.
The Standard & Poor’s 500 index rose by 34.71 points, or 0.83%, to close at 4,170.06 points, while the Nasdaq Composite Index rose 84.35 points, or 0.70%, to 12,226.58 points, while the Dow Jones Industrial Average rose 275.36 points, or 0.81%, to 34,101.52 points.
European stocks
European stocks rose by the end of trading, Friday, after corporate profits and the rise in oil stocks helped the European Stoxx 600 index to overcome the gloomy euro zone data and the decline in bank stocks.
The pan-European STOXX 600 rose 0.6%, posting an increase of 1.9% this month, boosted by corporate earnings after the March turmoil caused by the collapse of two US banks and a government-sponsored bailout of Credit Suisse.
“The month ends with a slight rally in stocks after a week in which earnings provided new good news,” said Chris Beauchamp, chief market analyst at IG online trading platform.
“But the first week of the new month will be as busy as the week that just ended, with major entities announcing decisions on interest rates and jobs data,” he added. There are still a lot of potential hurdles for any further gains in the stocks.
The real estate and healthcare sectors rose, 5.2% and 4.7%, respectively, outperforming the major European sectors during the month. Technology and mining stocks posted the biggest monthly losses, down 4.7% and 5.6%, respectively.
Oil and gas stocks led the gains and rose about 2% with the rise in crude oil prices, compensating for the decline in banking stocks, which fell 1.4%.
British bank NatWest fell 3.7% after announcing a drop in deposits of about 20 billion pounds in the first quarter. While the FTSE rose 3% in April, outperforming all major European indices.
Electrolux jumped 15.5% after the Swedish home appliance maker reported first-quarter sales. Mercedes-Benz Group rose 0.7%, while German chemical maker Covestro rose 8.5%.
Japanese stocks
Japanese stock indices rose, during trading, on Friday, to extend their gains for the second consecutive session, reaching their highest levels in more than 8 months. The Nikkei index rose on the Tokyo Stock Exchange by 1.33%, equivalent to 379.6 points, to reach the level of 28834.63 points.
The broader Topix index rose by 1.06%, equivalent to 21.62 points, to reach the level of 2054.13 points.
