Posted September 14, 2018 09:47:49After months of uncertainty, US stocks climbed on Friday, with the S&P 500 finishing the day with a gain of 0.6%.
On Thursday, the Dow Jones Industrial Average closed up 0.4% for the week, while the Nasdaq composite closed up 1.7% for its biggest one-day gain in over six years.US stocks have climbed as a group in 2017, when they have averaged just under a one-point gain per day for the past two years.
The gains have been fueled by a strong US dollar, a strong manufacturing sector, a booming US energy sector, and a rebound in oil and natural gas.
On Thursday afternoon, the US Federal Reserve started to raise interest rates for the first time since January, which is expected to further boost the economy.
But the US stock market also took another hit on Friday morning, with Nasdaq ending the day up 2.3% for a 1.4-point loss.
“We are seeing the effects of the Fed’s interest rate increase on the US dollar,” John F. Cramer, founder and chief investment officer of the cryptocurrency hedge fund Citadel, told CNBC on Friday.
“The dollar is down 2.5% against a basket of currencies.
So the dollar’s going to be down in the near term but it’s going back to where it was at the end of the year.” “
The dollar’s up against everything.
So the dollar’s going to be down in the near term but it’s going back to where it was at the end of the year.”
Cramer added that the drop in the US stocks was also linked to a drop in bond yields, which have fallen by more than 50 basis points since the start of the recession.
“It’s been a great day for US equities,” he said.
While US stocks have enjoyed gains in the past, this is the first year that they have performed this well since January.