Global stocks rallied on Friday, led by a 2.42% jump in consumer discretionary stocks, snapping a five-session streak of declines for the Dow and Nasdaq. The S&P 500 rose 1.26% to 5,942.47, while the Dow gained 0.80% to 42,732.13. All 11 major S&P sectors rose, with consumer discretionary leading the way.
The dollar, which had rallied recently, stalled but found some support from a stronger-than-expected US manufacturing survey. The leading index of the Institute for Supply Management (ISM) increased more than expected to 49.3, the highest reading since March.
The euro was down 0.43% at $1.0309 and set for its fifth straight weekly loss, while the British pound strengthened 0.36% to $1.2424. The Japanese yen remained relatively stable, down 0.15% to 157.29 against the dollar.
US 10-year Treasury yields edged 2.7 basis points higher to 4.602%, still above the 4.5% mark that has proven problematic for equities. Richmond Federal Reserve chief Tom Barkin said the central bank’s benchmark interest rate should remain restrictive until it is more certain that inflation is returning to the 2% target.
Crude oil prices jumped 1.13% to $73.96 a barrel, driven by colder weather in Europe and the US, as well as additional economic stimulus announced by China.
