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On Friday, US stocks jumped, rebounding for the second day in a row, led by technology stocks, and reopening trading, after Wall Street began the week with heavy losses. The “Dow Jones” index rose 320 points during trading, and the “S&P” index jumped 1.5%, while the “Nasdaq” index jumped 2%, supported by technology stocks. Stocks advanced despite the data showing that consumer purchases had slowed in the last month.
On Friday, the US Commerce Department reported that retail sales were flat in April. Technology stocks were the best performers in Friday’s trading, as Tesla’s share rose 1.2%, and Twitter’s shares rose by more than 1%, while Facebook, Apple, Amazon and others were traded. “Netflix” and “Alphabet” are green.
Disney shares bucked the trend, dropping 4.5%, after reporting weaker-than-expected revenues. The shares of “United Airlines” and “American Airlines” rose more than 4%, while the shares of “Carnival” rose by 6%, while the shares of “Norwegian Cruise Line” for cruises and “Royal Caribbean” for cruises advanced by more than 5%. %.
Market volatility comes this week, as economic data point to inflation. The Consumer Price Index jumped 4.2% from a year earlier in April, the fastest rate since 2008. This has raised concerns that the Federal Reserve may have to backtrack on its accommodative monetary policy.
Retail sales in April
Retail sales in the US were unexpectedly flat in April, as support eased from stimulus payments, but the coming months are likely to see an acceleration as savings reach unprecedented levels and economic activity resumes.
The Ministry of Commerce said Friday that the reading of retail sales that did not change last month came after a 10.7 percent rise in March, an upwardly revised reading from the previous reading, which indicated a growth of 9.7 percent.
Economists polled by Reuters had expected retail sales to rise 1 percent.
Several eligible families received an additional $ 1,400 payments in March, which came as part of a $ 1.9 trillion White House COVID-19-related aid package that was approved early that month.
Consumer spending, which accounts for more than two-thirds of US economic activity, grew at an annual pace of 10.7 percent in the first quarter of the year, adding 7.02 percentage points to the economy’s annual growth rate of 6.4 percent.
Industrial production rises
American factory production increased in April, with the return of compounds damaged by stormy weather in the south in February, offsetting the impact of a decrease in car production.
On Friday, the Reserve Board said manufacturing production rose 0.4 percent last month, after rising 3.1 percent in March. Production is still slightly below the pre-pandemic level.
“One of the important tributaries to the growth of factory production was the return of operations to complexes that were damaged by bad weather conditions during February in the south-center of the country and remained closed in March,” the reserve said.
Economists polled by “Reuters” had expected industrial production to grow 0.4 percent in April.
The manufacturing sector contributes 11.9 percent of the US economy, and is supported by a massive financial stimulus and a shift in demand towards goods at the expense of services due to the Coronavirus pandemic.
But the surge in demand has led to a shortage of raw materials, while the pandemic keeps some workers at home, which puts more pressure on supply.
A global semiconductor crisis has forced US auto makers to reduce production. Auto factory production fell 4.3 percent in April. Excluding cars, industrial production would have increased by 0.7 percent. (Reuters)
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