S&P, Nasdaq rise as megacaps gain ahead of key inflation data
By Shristi Achar A and Amruta Khandekar
(Reuters) — The S&P 500 and Nasdaq rose on Friday as megacaps including Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) gained ahead of a fresh inflation reading next week that will provide further clues on the U.S. interest rate trajectory.
U.S. Treasury yields edged lower on Friday, helping boost major growth stocks, with Tesla and Meta Platforms (O:META) leading gains, up about 1.6% each.
Shares of Apple rose 1.3% after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces.
Wall Street analysts see a small hit to Apple's revenue this year from the curbs, with Morgan Stanley saying the worst case scenario was a 4% drop.
The S&P 500 information technology sector rose 0.7%, with Adobe (NASDAQ:ADBE) up 1.0% after Mizuho upgraded the software firm to «buy» from «neutral.»
Energy was the top gainer among major S&P 500 sectors, up 0.7%, boosted by 1.0% gains in Conocophillips (NYSE:COP) after brokerage Erste Group raised the oil and gas producer's rating to «buy.»
The S&P 500 and the Nasdaq have shed more than 1% this week as stronger-than-expected services activity data and a fall in weekly jobless claims fueled concerns the Federal Reserve could keep interest rates higher for longer.
«This month of September so far has taken the path of a negative outlook on rates, meaning that the Fed will probably continue to raise rates to combat the stubborn growth of the economy in the U.S.,» said Peter Andersen, founder of Andersen Capital Management.
The Consumer Price Index reading for August is due on Sept. 13, while the Federal Reserve's policy decision is scheduled for Sept. 20.
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