Stocks’ Weekly Gains Safeguarded by Serene Market Day

Wall Street concluded another successful week with a calm Friday, as stocks regained stability following a previous decline, as reported by the AP.

The S&P 500 inched up by 1.47, or less than 0.1%, to reach 4,536.34.
The Dow increased by 2.51 points, or less than 0.1%, and reached 35,227.69.
The Nasdaq experienced a slight decline of 30.50, or 0.2%, closing at 14,032.81.

Roper Technologies soared 3.7% and was one of the top gainers in the S&P 500 after reporting better-than-expected profits and revenue for the spring season. The company, renowned for its expertise in niche tech markets, also raised its financial projections for the full year. As the earnings reporting season picks up pace, a majority of companies are outperforming expectations. However, according to FactSet, they are doing so by a slightly narrower margin than usual. On the downside, American Express fell 3.9% on Wall Street. Despite reporting stronger-than-expected profits for the spring, its revenue fell short of forecasts.

The Federal Reserve is widely anticipated to raise its federal funds rate on Wednesday, which would mark its highest level since 2001. However, this could potentially be the final increase in the cycle, as inflation has been cooling since last summer. Last year, the federal funds rate stood at virtually zero. While the S&P 500 has surged 18.1% this year, critics argue that the rally has advanced too quickly and too far. The risk of a recession remains due to persistently high levels of inflation and interest rates. When Fed Chair Jerome Powell delivers his speech on Wednesday following the central bank’s rate decision, economists at Deutsche Bank suggest that he will emphasize the need for further evidence to have confidence in taming inflation.

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