8th Consecutive Day of Gains for Dow Jones as Fed Rate Cut Speculation Continues

On Friday, US stocks continued their upward trend, with the Dow Jones Industrial Average (DJI) rising by approximately 0.2% and the benchmark S&P 500 (GSPC) gaining around 0.3%. The technology-heavy Nasdaq Composite (IXIC) also saw a modest increase of around 0.2%. This marked the eighth consecutive day of gains for the DJI, fueled by growing optimism that the Federal Reserve may cut interest rates earlier than expected due to signs of a cooling labor market. Investors will be closely listening to speeches by a number of Fed officials, including Michelle Bowman, Neel Kashkari, and Austan Goolsbee, later in the day for further insights into potential policy changes. Earlier in the week, Atlanta Federal Reserve President Raphael Bostic indicated his preference for delaying any rate cuts until clear evidence emerges that inflation is declining. In other developments, semiconductor manufacturer TSMC (TSM) reported a significant jump in sales for April, driven by strong artificial intelligence demand and a resurgence in consumer electronics like smartphones. These positive results contributed to a broader sense of market optimism, with the S&P 500 on track to secure a third successive weekly gain for the first time in several months. Overall, the mood in financial markets remained buoyant, with Deutsche Bank noting that this had been the most robust performance for the S&P 500 over six sessions so far this year. The S&P 500 has risen by approximately 3.9% since hitting a recent low on May 1.