Investing.com — U.S. stocks rose Friday as Treasury yields fell after Federal Reserve Chairman Jerome Powell signaled interest rate cuts were coming.
At 4:00 PM EDT (2000 GMT), the stock climbed 1.1%, for a gain of 1.5% for the week, and rose 462 points, or 1.1%, while losing 1.5% won.
Powell says: ‘time has come to adjust policy’
said Friday that the “time has come” for policy adjustment in a context of cooling inflation and a weaker labor market. The Fed chief also appeared to keep the door open for a bigger rate cut, saying both the size of the rate cuts and their frequency would depend on incoming data.
“The path is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks,” Powell said Friday at the Kansas City Fed’s annual conference in Jackson Hole, Wyo.
According to the Investing.com report, the probability of a larger cut increased by 50 basis points in September to 36% from 28% the day before.
Treasury yields fell sharply, with Treasury yields sensitive to Fed policy falling 8 basis points to 3.93%.
Uber Announces Partnership with Cruise; Ross Stores, Workday provides guidance
Uber Technologies (NYSE:) has announced a multi-year partnership with Cruise, a subsidiary of General Motors (NYSE:), allowing the latter’s self-driving vehicles to launch on Uber’s ride-hailing platform. Uber rose 1%, while General Motors rose more than 4%.
“We are encouraged that Uber is partnering with yet another AV player in Cruise and believe this reinforces the idea that AVs are unlikely to result in a winner-takes-all market, but rather are more likely to are being commoditized,” said Deutsche Bank. said in a note Friday.
Shares of Ross Stores (NASDAQ:) rose nearly 2% after the retailer raised its fiscal 2024 earnings forecast and posted better-than-expected second-quarter results late Thursday, benefiting from demand for its discounted apparel and the decreasing freight costs.
Shares of Workday (NASDAQ:) rose 12% after the HR software provider took a more balanced view on growth versus margins following better-than-expected second-quarter revenue. The company also announced a $1 billion stock buyback plan.
“Workday surprised most investors (and us) by making a pronounced and very welcome pivot in the growth vs. margins trade-off, reversing the previous 17-19% CAGR over fiscal 27/3 years and bringing it to 15 %,” said UBS. said in a Friday note. The company also increased its non-GAAP operating margin target for fiscal 2027 from 25% to 30% and announced a $1 billion stock buyback plan.
RFK Jr. suspends presidential campaign and supports Trump
Robert F. Kennedy Jr. suspended its US presidential campaign on Friday and endorsed Republican presidential candidate Donald Trump.
Kennedy said his name would remain on the ballot in most states, and emphasized that he was only suspending his campaign, not ending it.
“I’m not ending my campaign, I’m just suspending it and not ending it. My name will remain on the ballot in most states,” he said at an event in Arizona on Friday.
(Peter Nurse, Ambar Warrick contributed to this article.)
