4:02pm: Dow in the green
US stocks gained traction in the late afternoon on Friday, ending another strong month for equities.
The Dow Jones had added 1.5% or 574 points at 38,686 points and the S&P 500 gained 0.8% at 5,277 points.
The Nasdaq was flat at 16,735 points.
12:04pm: Investors on edge
US stocks were mixed as progress in slowing inflation as measured by the Personal Consumption Expenditures (PCE) index was marred by concerns about geopolitical risks.
At midday, the Dow Jones had edged 0.1% higher at 38,162 while the Nasdaq fell 1.4% at 16,502 points and the S&P 500 was down 0.6% at 5,202 points.
“While cooler US inflation provided the good news, hotter eurozone price data and developments in Ukraine meant that investors remained on edge,” IG chief market analyst Chris Beauchamp commented.
“NATO countries have indicated their willingness to allow Ukraine to use their weapons on Russian territory, and now the world waits to see how Russia will respond. Combined with the French decision to deploy military advisors in Ukraine, it looks like spillover risks from the conflict are back on the agenda for investors.”
Friday’s PCE reading came in at 2.8% for April, in line with expectations, and increased just 0.2% month-over-month, the slowest monthly rise seen in 2024.
“While it leaves expectations around the June Fed meeting unchanged, it at least allays some worries that a hike was becoming more likely,” Beauchamp said.
“However, inflation figures from France and the eurozone were hotter than expected, signalling that the battle against inflation is far from over.”
Meanwhile, former US president Donald Trump held a press conference in New York after he was found guilty on all 34 counts in his hush money trial.
Trump told reports he would appeal the conviction and claimed the trial was “rigged.”
10.37am: Nasdaq sent lower
The Nasdaq 100 opened 1% lower this Friday to trade at 18,339 after the first hour of trades.
The Dow Jones Industrial Average was 0.1% higher at 38,150, while the broader S&P 500 index dipped 0.4% to 5,214.
Among the top movers were Zscaler Inc, Warner Bros, Sirius XM, Walgreens and Lululemon.
On the macro calendar, the annual PCE inflation rate steadied at 2.7% in April, pausing after an acceleration in March, and matching market forecasts.
7.44am: Trump convicted
Losses are expected to continue on the US stock market this Friday after the three main indexes closed lower on Thursday.
The Dow Jones Industrial Average (DJIA) is tipped to open a touch lower at 38,082, while the Nasdaq 100 tech index is expected to open 0.3% lower at 18,481.
Meanwhile futures contracts for the broader S&P 500 index have it opening 0.15% lower at 5,226.
Undoubtedly, markets will take a backseat in the news cycle in favour of presidential nominee Donald Trump’s conviction on 34 counts of falsifying business records.
Trump unsurprisingly called the trial “rigged” and a “disgrace”, while Trump’s lawyers confirmed they will appeal “as soon as we can”.
Kremlin spokesman Dmitry Peskov chirped up following the guilty verdict, stating: “The fact that a de-facto elimination of political rivals by all possible legal and illegal means is going on there is obvious.”