Asian shares ended mostly higher in quiet, Good Friday holiday trading, with Tokyo’s Nikkei 225 rising 0.5% and the Shanghai Composite index gaining 1%. The U.S. dollar slipped to 151.35 Japanese yen, and the euro edged lower to $1.0774. In U.S. markets, the S&P 500 added 0.1% to close at an all-time high of 5,254.35, while the Dow Jones Industrial Average ticked up to 39,807.37. Meanwhile, the Nasdaq composite dipped to 16,379.46. Chemours and Trump Media & Technology Group saw losses despite positive earnings and stock performance.
The U.S. stock market has been on a steady incline since late October, with the S&P 500 capping its fifth straight winning month. The market growth coincides with a resilient U.S. economy despite high interest rates aimed at controlling inflation. The Federal Reserve has signaled potential interest rate cuts later in the year to ease economic pressure and boost investment prices. The hope is that inflation is cooling down from its peak, allowing for a more stable economic environment conducive to rate cuts.
Analysts are monitoring signs of a potential housing market recovery amid expectations of declining interest and mortgage rates later in the year. U.S. benchmark crude oil gained $1.82 to $83.17 per barrel in electronic trading on the New York Mercantile Exchange, with Brent crude, the international standard, surging to $87.00 per barrel. Trading was closed on Good Friday, marking a pause in market activity. The U.S. economy showed stronger growth in the final quarter of the previous year, with fewer workers applying for unemployment benefits, indicating resilience despite economic challenges.
Investors remain optimistic about potential interest rate cuts by the Federal Reserve in June, which could provide further economic relief and stability. Progress on bringing inflation down has faced some challenges this year, with reports coming in hotter than expected. Despite this, the market continues to show positive performance, fueled by hopes of a supportive economic environment. The overall sentiment is one of readiness to capitalize on opportunities for growth, particularly in sectors like housing, which are expected to benefit from lower interest rates later in the year. Trading activity was subdued on Good Friday, with European and U.S. markets closed for the holiday.
