By Stephen Culp
NEW YORK (Reuters) – Tech stocks pushed Wall Street stocks higher and crude prices posted their biggest weekly decline in a month on Friday, as investors looked past mixed gains and focused on solid Netflix (NASDAQ:) results and Beijing’s policy steps to stimulate Chinese demand.
Gold, meanwhile, crossed the $2,700 mark for the first time ever.
“Gold is having a strong run because of the magnitude of uncertainties,” said Greg Bassuk, CEO of AXS Investments in New York. “It’s a matter of safe havens, and investors would be wise to diversify allocations to safe havens in their portfolios amid this deep level of uncertainty.”
Tech-adjacent mega-cap momentum stocks boosted the Nasdaq, while the ‘s and the Dow’s gains were more modest on the day.
However, the S&P 500 and the Dow Jones recorded record highs.
All three indexes posted their sixth straight week of gains, their longest weekly winning streak since late 2023.
The revenue stream ranged from upbeat to downbeat, with streaming platform Netflix posting a strong increase in subscribers, while consumer products company Procter & Gamble (NYSE:) reported a surprise drop in revenue due to declining demand for its products.
“Netflix kicked off the tech sector, and when one sector is strong, people tend to sell the other sectors, so the Nasdaq leads and the Dow Jones lags,” said Jay Hatfield, CEO of Infrastructure Capital Management in New York. “But just a few days ago the exact opposite happened. So it’s a classic market meltdown.”
“People are reacting to global (interest rate) cuts and the U.S. economy is strong,” Hatfield added. “The only uncertainty is the US presidential election, but it appears that people are also feeling more comfortable with that outcome.”
They rose by 36.86 points, or 0.09%, to 43,275.91; the S&P 500 rose 23.20 points, or 0.40%, to 5,864.67; and it rose 115.94 points, or 0.63%, to 18,489.55.
European shares closed higher, helped by a rebound in technology stocks at the end of a choppy week that included mixed earnings and a rate cut from the European Central Bank. The logged its second weekly advance.
A rally in Chinese shares in response to Beijing’s latest policy moves to boost demand also boosted investor sentiment.
The MSCI index for shares around the world rose 5.04 points, or 0.59%, to 857.11. The STOXX 600 index rose 0.21%, while the broad European index rose 4.81 points or 0.23%
Emerging market stocks rose 19.59 points, or 1.73%, to 1,154.72.
U.S. Treasury yields fell as the market consolidated after big gains last month, as market participants grew accustomed to less easing from the Fed despite stronger-than-expected economic data.
The yield on U.S. 10-year benchmark bonds fell 2.1 basis points to 4.075% from 4.096% late Thursday.
Interest rates, which usually keep pace with interest rate expectations, fell 3.7 basis points to 3.95% from 3.987% late Thursday.
The dollar fell after five straight sessions of gains as risk appetite improved in the wake of Beijing’s stimulus announcement. But the dollar looked poised to post its third consecutive weekly gain.
The , which measures the dollar against a basket of currencies including the yen and euro, fell 0.28% to 103.49, while the euro rose 0.3% to $1.0864.
Against the Japanese yen, the dollar weakened 0.45% to 149.53.
Front-month oil futures fell and were on track for their biggest weekly decline since early September on rising concerns about Chinese demand and investors had mixed expectations about the conflict in the Middle East.
fell 2.05% to $69.22 per barrel, while falling to $73.06 per barrel, down 1.87% on the day.
Gold prices broke the $2,700 mark for the first time, as the safe haven metal continues to benefit from global uncertainties.
rose 1.01% to $2,719.75 an ounce.
