Zinger Key Points

Stocks staged a sharp rebound on Friday as concerns over a potential government shutdown eased after Senate Minority Leader Chuck Schumer (D-NY) opted not to veto a Republican spending bill.

The S&P 500 jumped 1.9%, eyeing track for its strongest daily rally since November 6, 2024, when investors piled into equities following Donald Trump‘s presidential election victory.

Tech stocks and small caps both gained 2.3%, while the Dow Jones Industrial Average advanced 1.5%.

Despite Friday's gains, the broader market remains deeply in the red for the week, with the S&P 500 heading for its fourth consecutive weekly decline, marking the longest losing streak since May 2022.

All S&P 500 sectors traded in positive territory on Friday, though only utilities and energy are poised to end the week with gains.

Economic data painted a concerning picture. The University of Michigan’s consumer sentiment index fell more than anticipated, while inflation expectations spiked. A key gauge tracking five-year forward inflation expectations among consumers climbed to 3.9%, the highest level since March 1993.

Bitcoin BTC/USD surged 4% to $84,000, flipping to weekly gains and lifting other crypto-related assets. Meanwhile, gold, as tracked by the SPDR Gold Trust GLD, was flat on the day but reached a historic milestone, hitting $3,000 per ounce for the first time ever.

The precious metal is on pace to post its tenth positive week in the past eleven, outperforming all major asset classes year-to-date.

Stock markets also rallied worldwide. Chinese equities soared on expectations of increased government stimulus, while European stocks surged after Germany secured a historic deal to raise its debt ceiling.

Friday’s Performance In Major US Indices, ETFs

Major IndicesPrice1-day %chg
Nasdaq 10019,636.472.3%
Russell 20002,038.132.3%
S&P 5005,615.851.8%
Dow Jones41,408.071.5%
Updated as of 1:30 p.m. ET

According to Benzinga Pro data:

  • The SPDR S&P 500 ETF Trust SPY rose 1.8% to $561.04.
  • The SPDR Dow Jones Industrial Average DIA rose 1.5% to $414.39.
  • The tech-heavy Invesco QQQ Trust Series QQQ rallied 2.3% to $477.99.
  • The iShares Russell 2000 ETF IWM surged 2.3% to 203.12
  • The Energy Select Sector SPDR Fund XLE outperformed, up 2.6%; the Consumer Staples Select Sector SPDR Fund XLP was the laggard, up 0.1%.

Friday’s Stock Movers

Stocks reacting to earnings report included:

  • DocuSign Inc. DOCU, up 17%,
  • Ulta Beauty Inc. ULTA, up 12.4%,
  • Li Auto Inc. LI, down 3.1%,
  • Wheaton Precious Metals Corp. WPM, up 1.8%,
  • Crown Castle Inc. CCI, up 8.7%.

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