U.S. markets ended the trading day higher on Friday, with the Dow Jones Industrial Average advancing 1.79% to register a new one-month high at the close in New York. The S&P 500 gained 1.20% and the NASDAQ Composite increased 1.52%, as strength in Industrials, Consumer Goods and Technology stocks underpinned the rally.
On the Dow, Sherwin-Williams Co (NYSE:SHW) was the session est performer, rising 3.67% or 12.22 points to finish at 345.55. Home Depot Inc (NYSE:HD) added 3.62% or 12.22 points to end at 349.40, and Merck & Company Inc (NYSE:MRK) climbed 3.13% or 3.61 points to 119.07 in late trade.
Not all Dow components were higher. Chevron Corp (NYSE:CVX) declined 2.16% or 4.07 points to close at 183.99, Verizon Communications Inc (NYSE:VZ) slipped 0.49% or 0.23 points to 46.55, and Johnson & Johnson (NYSE:JNJ) fell 0.15% or 0.36 points to 234.18.
Within the S&P 500, several travel and leisure-related names led the list of gainers. Royal Caribbean Cruises Ltd (NYSE:RCL) rose 7.34% to 285.48, United Airlines Holdings Inc (NASDAQ:UAL) was up 7.12% to settle at 101.80 and Carnival Corporation (NYSE:CCL) gained 6.96% to close at 29.22.
At the same time, a group of stocks recorded steep losses on the S&P 500. LyondellBasell Industries NV (NYSE:LYB) dropped 11.98% to 66.27 in late trade, Dow Inc (NYSE:DOW) lost 10.83% to settle at 35.60 and Netflix Inc (NASDAQ:NFLX) declined 9.72% to 97.31 at the close.
Activity on the NASDAQ Composite included extreme moves among smaller and microcap listings. Energy Focu (NASDAQ:EFOI) surged 210.53% to 6.49, Forum Markets, Inc (NASDAQ:FRMM) climbed 81.01% to settle at 4.29 and Beasley Broadcast Group Inc (NASDAQ:BBGI) gained 53.64% to close at 21.51.
Conversely, several NASDAQ names plunged. LZ Technology Holdings Ltd (NASDAQ:LZMH) fell 84.07% to 0.17 in late trade, Fitness Champs Holdings Ltd (NASDAQ:FCHL) lost 76.88% to settle at 0.36 and Cheetah Net Supply Chain Service Inc (NASDAQ:CTNT) was down 40.73% to 0.10 at the close.
Market breadth favored advancing stocks. On the New York Stock Exchange, rising issues outnumbered decliners by 2094 to 669, with 50 issues unchanged. On the Nasdaq Stock Exchange, 2438 stocks rose, 920 declined and 210 finished unchanged.
The session included several notable intra-stock milestones. Shares of Energy Focu (NASDAQ:EFOI) reached three-year highs after jumping 210.53% or 4.40 to 6.49. LZ Technology Holdings Ltd (NASDAQ:LZMH) fell to all-time lows, losing 84.07% or 0.92 to 0.17. Beasley Broadcast Group Inc (NASDAQ:BBGI) rose to 52-week highs, up 53.64% or 7.51 to 21.51. Cheetah Net Supply Chain Service Inc (NASDAQ:CTNT) declined to all-time lows, down 40.73% or 0.07 to 0.10.
Volatility cooled across U.S. equity options. The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, fell 2.62% to 17.47, marking a one-month low for the index.
Commodities and currencies moved unevenly. Gold Futures for June delivery was up 1.19% or 57.31 to $4,865.61 a troy ounce. Energy markets saw steep declines: crude oil for May delivery fell 10.25% or 9.71 to hit $84.98 a barrel, while the June Brent oil contract declined 8.58% or 8.53 to trade at $90.86 a barrel.
In foreign exchange trading, EUR/USD was essentially unchanged, moving 0.14% to 1.18, while USD/JPY weakened 0.36% to 158.64. The US Dollar Index Futures finished unchanged at 98.02, a 0.00% move.
Key takeaways
- Major U.S. indices closed higher, with the Dow posting a one-month high as Industrials, Consumer Goods and Technology stocks led gains.
- Travel and leisure-related names were strong on the day, while several large-cap materials and industrial names posted significant declines.
- Volatility eased to a one-month low even as commodity markets displayed notable divergence, with crude oil prices dropping sharply.
Risks and uncertainties
- Concentrated losses among a number of large-cap names - including LyondellBasell Industries (NYSE:LYB), Dow Inc (NYSE:DOW) and Netflix (NASDAQ:NFLX) - signal near-term downside risk for affected sectors.
- Heavy declines in crude oil prices could create headwinds or volatility for energy sector participants and related equities.
- Wide swings and extreme percentage moves among smaller-cap and microcap NASDAQ listings indicate elevated idiosyncratic risk in that segment of the market.