Stocks moved sharply higher over the course of the trading day on Friday, more than offsetting the weakness seen on Thursday. In a reversal from the previous session, the markets benefited from some upbeat U.S. economic data as well as comments from a Federal Reserve official.
The major averages saw further upside going into the close, with the Dow and the S&P 500 reaching new record highs. The Dow climbed 121.80 points or 0.8 percent to 15,354.40, the Nasdaq advanced 33.72 points or 1 percent to 3,498.97 and the S&P 500 rose 15.65 points or 1 percent to 1,666.12.
With the gains on the day, the major averages all posted strong gains for the week. The Dow surged up by 1.6 percent, while the Nasdaq the S&P 500 jumped 1.8 percent and 2 percent, respectively.
The rebound on Wall Street came on the heels of the release of a pair of better than expected U.S. economic reports, including a report showing a substantial improvement in consumer sentiment in the month of May.
Thomson Reuters and the University of Michigan said the preliminary reading on their consumer sentiment index for May came in at 83.7 compared to the final April reading of 76.4.
With the sharp jump, the consumer sentiment index came in well above economist estimates for a reading of 78.0 and reached its highest level since July of 2007.
Jennifer Lee, senior economist at BMO Capital, said, "This much better-than-expected report indicates that stock markets at record highs, appreciating house values, and a generally stronger economy (notwithstanding the softer patch we're currently in) does good things to confidence."
A separate report from the Conference Board showed that leading economic indicators rose by more than anticipated in April, led by building permits and the interest rate spread
The Conference Board said its leading economic index rose by 0.6 percent in April following a revised 0.2 percent decrease in March. Economists had been expecting a more modest 0.3 percent increase.
Further buying interest was seen late in the day following remarks by Minneapolis Federal Reserve Bank President Narayana Kocherlakota, who continued to make the case for accommodative monetary policy.
"The gains from tightening related to improving financial stability are both speculative and slight," Kocherlakota said. "In contrast, the losses from tightening, in terms of pushing employment and prices even further below the Federal Reserve's goals, are both tangible and significant."
Subsequently, Kocherlakota, who is not a voting Federal Open Market Committee member this year, said, "Financial stability considerations provide little support for reducing accommodation at this time."
Among individual stocks, shares of ViaSat (VSAT) moved sharply higher on the day after the satellite broadband company reported a better than expected fourth quarter profit compared to a year-ago loss. ViaSat jumped 19.3 percent to a record high.
Action sports apparel maker Quiksilver (ZQK) also turned in a strong performance after announcing a multi-year profit improvement plan. When fully implemented in 2016, the plan is expected to improve the company's EBITDA by $150 million.
Meanwhile, shares of Aruba Networks (ARUN) showed a substantial move to the downside after the wireless-network equipment reported weaker than expected third quarter results and provided disappointing guidance. Aruba ended the day down by 25.6 percent.
Sector News
Natural gas stocks showed a strong upward move over the course of the trading day, driving the NYSE Arca Natural Gas Index up by 2 percent. The gain extended a recent upward trend by the index, which reached a record closing high.
The strength among natural gas stocks was partly due to a notable increase by the price of the associated commodity, with natural gas for June delivery climbing $0.123 to $4.055 per million BTUs.
Similarly, oil service stocks saw significant strength, moving higher along with the price of crude oil. With crude for June delivery jumping $0.86 to $96.02 a barrel, the Philadelphia Oil Service Index advanced by 1.9 percent.
Considerable strength also emerged among brokerage stocks, as reflected by the 1.8 percent gain posted by the NYSE Arca Broker/Dealer Index. A strong gain by Nomura Holdings (NMR) helped lift the index to a two-year closing high.
Housing, banking, software and chemical stocks also showed strong moves to the upside on the day, moving higher along with most of the other major sectors.
Meanwhile, gold stocks bucked the uptrend amid a decrease by the price of the precious metal. As gold for June delivery slid $22.20 to $1,365.30 an ounce, the NYSE Arca Gold Bugs Index fell by 4.1 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 25 Index advanced by 0.7 percent, while China's Shanghai Composite Index surged up by 1.4 percent.
The major European markets also moved to the upside on the day. While the German DAX Index rose by 0.3 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index ended the day up by 0.5 percent and 0.6 percent, respectively.
In the bond market, treasuries showed a substantial pullback after moving sharply higher in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 8.4 basis points to 1.949 percent.
Looking Ahead
Following the slew of economic data released over the past week, the economic calendar for next week is relatively light. Nonetheless, traders are likely to keep an eye on reports on new and existing home sales, durable goods orders, and weekly jobless claims.
Trading may also be impacted by remarks from Federal Reserve Chairman Ben Bernanke, who is due to testify on the outlook for the U.S. economy before the Joint Economic Committee of Congress.
On the earnings front, Home Depot (HD), Best Buy (BBY), Hewlett-Packard (HPQ), Target (TGT), and Sears (SHLD) are among the companies due to release their quarterly results next week.
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Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.