Investors evaluate Trump interim pick for Fed governor
Gilead jumps on full-year outlook raise
Indexes up: Dow 0.6%, S&P 500 0.8%, Nasdaq 0.9%
NEW YORK, Aug 8 (Reuters) – U.S. stocks were higher on Friday as technology shares, including Apple, gained and as investors were optimistic about expectations for rate cuts this year.
The three major indexes were also on track for solid gains for the week.
Apple shares climbed 4.6%, adding to recent gains. Earlier this week, U.S. President Donald Trump said Apple would invest an additional $100 billion in the U.S., bringing its total commitment to $600 billion over the next four years.
The S&P 500 technology index rose 1.3%.
Also helping the S&P 500, shares of Gilead Sciences rose 8.1% after it raised its full-year financial outlook.
Recent weaker economic data has underpinned expectations for rate cuts, while investors are evaluating Trump’s interim pick for a Federal Reserve governor.
The president late in Thursday’s session nominated Council of Economic Advisers Chair Stephen Miran to a short-term board seat following Adriana Kugler’s abrupt exit last week, as he narrowed his shortlist to succeed Fed Chair Jerome Powell, whose term ends on May 15.
Miran, who is often aligned with Trump, has previously suggested Powell was “too late” in lowering rates.
Traders now peg about a 90% chance of the first rate cut hitting next month, according to CME Group’s Fedwatch tool, with futures pointing to at least two cuts by year-end.
“There are certainly investors who think if the Fed is going to cut rates then the overarching theme is, don’t fight the Fed on lower rates,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
“The other side of the equation has really been the tariffs, and how the tariffs turn out remains uncertain. They are still being negotiated, and I don’t think too many people want to be short knowing there could be quick reversals on any of the tariff decisions that now seem problematic.”
The Dow Jones Industrial Average rose 259.17 points, or 0.59%, to 44,227.81, the S&P 500 gained 52.39 points, or 0.83%, to 6,392.39 and the Nasdaq Composite gained 200.15 points, or 0.94%, to 21,442.85. Trump’s higher tariffs on imports from dozens of countries kicked in this week.
Investors also monitored U.S.-India trade relations as New Delhi shelved fresh U.S. arms and aircraft purchases, according to three Indian officials, after Trump hiked tariffs on Indian exports to 50% this week.
Shares of Expedia rose 3.1% after the company raised its annual forecast for gross bookings and revenue growth.
Advancing issues outnumbered decliners by a 1.41-to-1 ratio on the NYSE. There were 233 new highs and 74 new lows on the NYSE.
On the Nasdaq, 2,376 stocks rose and 2,052 fell as advancing issues outnumbered decliners by a 1.16-to-1 ratio. (Additional reporting by Nikhil Sharma and Pranav Kashyap in Bengaluru; Editing by Maju Samuel)
