Stocks Gain on Bets Fed Can Pull Off Soft Landing: Markets Wrap
- US retail sales, producer prices jump on rising energy costs
- Euro drops on wagers ECB to stay on hold after hiking Thursday
Stocks rose after strong economic reports revived speculation the Federal Reserve will be able to engineer a soft landing even if it keeps interest rates higher for longer. The euro dropped amid bets the European Central Bank will stay on hold after hiking on Thursday.
All major groups in the S&P 500 advanced as the gauge topped 4,500. The Dow Jones Industrial Average added 1%. Earlier in the day, equity futures pared gains as retail sales and producer prices beat estimates amid rising energy costs. Arm Holdings Plc surged 25% in its trading debut. Ford Motor Co. and General Motors Co. underperformed, with Detroit carmakers facing the threat of a strike. In late hours, Adobe Inc. fell on a tepid sales outlook. Traders also braced for Friday’s triple witching options event — which has the potential to trigger volume spikes and volatility.