Stocks rose on Friday as investors digested a pair between two of the largest US automakers and prepared for the Federal Reserve’s next decision on an interest rate hike.
The S&P 500 (^GSPC) rose 0.12% while the Nasdaq Composite (^IXIC) rose 0.16% and the Dow Jones Industrial Average (^DJI) rose 0.13%, or 44 points.
The Nasdaq has risen for seven straight weeks while the S&P 500 has climbed to its highest level since August 2022.
The S&P 500 ended Thursday’s trading sessions up more than 20% from its October 2022 lows, officially marking the beginning of a bull market. The rise in stocks comes as 2023 begins as strong economic data continues to outweigh ongoing recession fears.
“I think the worst is behind us,” Brian Belsky, chief investment strategist at BMO Capital Markets, who recently raised the year-end price target for the S&P from 4,300 to 4,550, told Yahoo Finance Live. “The Fed has, perhaps, one more rate hike between now and the end of the year, which is good, but I think most of that has already been priced into the market.”
Shares of Tesla (TSLA) and General Motors (GM) traded higher on the open market after General Motors announced Thursday that it is teaming up with Tesla to tap into the electric car maker’s Supercharger network. The announcement comes two weeks after Ford (F) announced a similar partnership with Tesla to enable access for Ford vehicles to Tesla’s charging network.
“This collaboration is a key part of our strategy and an important next step in expanding rapid access to fast chargers for our customers,” GM CEO Mary Barra said in a press release.
Tesla shares rose 4% on the news, extending an 11-day rally. The recent rally in Tesla shares is tied for an all-time winning streak of consecutive days.
Shares of Docusign (DOCU) turned negative as the company beat analyst estimates for both revenue and earnings per share in the most recent quarter. Several Wall Street analysts reiterated the sell ratings for the stock.
UBS analyst Carl Kerstedt wrote in a note to clients after the earnings release..
Meanwhile, stock Netflix (NFLX) rose 2.6% on the Friday after that new data From the analytics platform, Antenna shows that US subscriptions to the streaming service have jumped the most in at least four-and-a-half years after a password-sharing campaign was launched last month.
On the economic front, Friday is expected to be quiet. Markets anticipating the Fed’s next move are currently pricing in a 78% chance that the Fed will pause its rate hike cycle at its meeting next week.
“The Federal Open Market Committee will likely pause at its June meeting next week to let the fog clear before it considers another rate hike,” a team of Goldman Sachs economists led by Jan Hatzios wrote in a note to clients Thursday night.
The economists added, “The Fed’s leadership has indicated that it views a pause as the prudent course because uncertainty about both the delayed effects of interest rate hikes already made and the impact of bank credit tightening increases the risk of accidental overtightening.”
Josh is Yahoo Finance Correspondent.
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