Wall Street's major indexes closed higher on the week on Friday, as investors downgraded the likelihood of the US Federal Reserve renewing its rate hiking campaign.
In the week to Friday, the Dow Jones Industrial Average rose 2.65 percent to 11,381.47, notching up its second best weekly increase since the start of the year.
The technology-packed NASDAQ market closed up 5.16 percent on the week at 2,163.95, notching up its strongest weekly point gain since May 2002. The broad-market Standard and Poor's 500 rose 2.81 percent to 1,302.30.
Analysts said stocks got a strong boost from tepid inflation data released in the past week, which they said should comfort the Fed.
The central bank brought its long rate-hiking campaign to a halt almost two weeks ago.
The Fed funds rate is currently pegged at 5.25 percent.
"The market will probably be flattish next week. As long as the economic data remain certainly positive, that's going to give investors the impetus to continue to put money to work here," said Michael Malone, an analyst at Cowen and Co.
Stocks gained in the past week partly as traders began betting more heavily that the Fed will not hike US interest rates in coming months, especially following modest producer and consumer price inflation for July.
"I do actually think the Fed is done" with rate hikes, Malone said.
However, one area of concern that investors will be tracking closely in the coming week is the nation's housing market which has entered a downturn following several boom years.
"The focus is going to be on the housing market. If the housing data are weaker than expected, that draws the question of how weak the economy is going to get," said Peter Cardillo, an analyst at SW Bach.
However, it is currently unclear whether the housing market will experience a soft or hard landing, as home sales slow and newly built homes take longer to sell.
"Reports on the status of the economy are expected to reinforce the picture of a fairly broad-based slowdown in activity in the third quarter. New and existing home sales are expected to decline in the month of July," said Brian Bethune, an analyst at Global Insight.
Existing US home sales are forecast to slow to 6.58 million units in July, compared with the 6.62 million units sold in June, according to Wall Street economists.
If sales decline as forecast it will mark the fourth straight monthly drop in existing home sales.
Bond prices strengthened over the week.
The yield on the 10-year Treasury bond dropped to 4.835 percent from 4.967 percent a week earlier, while that on the 30-year bond fell to 4.973 percent from 5.092 percent. Bond yields and prices move in opposite directions.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective