US stocks jumped on Friday despite some hawkish-leaning comments from Fed officials that suggested no interest rate cuts this year.
US stocks traded higher on Friday, securing an eight-day winning streak for the Dow Jones Industrial Average.
The gains came despite hawkish comments from two Federal Reserve officials on Friday. Fed Governor Michelle Bowman said she doesn't expect any interest rate cuts this year, while Fed President Lorie Logan said its still too early to be thinking about interest rate cuts based on the latest inflation data.
Yet, stocks pressed higher anyway, buoyed by a solid first-quarter earnings season.
Of the 92% of S&P 500 companies that have so far reported results, 81% beat profit estimates by a median of 8%, while 60% beat revenue estimates by a median of 5%, according to data from Fundstrat.
Investors will now turn their attention to the upcoming release of the April consumer price index report on Wednesday. The report will offer insights into when the Fed might move forward with interest rate cuts.
Fundstrat's Tom Lee expects a lower-than-expected inflation report, which should send dovish signals to the Fed and push stocks higher for the rest of May.
"This April CPI will highlight the possibility that auto insurance's disproportionate impact on CPI is ebbing," Lee said in a note on Friday.
Here's where US indexes stood at the 4:00 p.m. closing bell on Friday:
Here's what else happened today:
In commodities, bonds, and crypto: