Truist Financial rose 4.6% after joining the list of banks to report better profits for the end of 2024 than analysts expected. The company said its average deposits rose 1.5% during the quarter, and it followed bigger-than-expected profit reports from large rivals like Wells Fargo, Citigroup and others.
Other smaller, regional banks reported mixed results on Friday, though.
The most forceful pushes upward came from Big Tech stocks. All the companies in what’s come to be known as the “Magnificent Seven” rose. Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla each climbed at least 1%. Because they’re so massive in size, their movements carry more weight on the S&P 500 and other indexes than any other stock.
The Magnificent Seven has been under pressure recently because of criticism their stock prices may have grown too expensive after leading the market for so many years. Such worries gained momentum after Treasury yields jumped in the bond market in recent weeks. Higher yields hurt prices for all kinds of investments, and they weigh particularly heavily on those seen as the most expensive.
Stocks got a lift this week from an encouraging report on inflation, which raised hopes that the Federal Reserve may be able to deliver more cuts to interest rates later this year. More such cuts, which began in September, would ease the brakes off the economy and boost prices for investments, but they could also give inflation more fuel.
Treasury yields eased sharply because of it, and the 10-year Treasury yield slipped further on Friday. It’s down to 4.60% from 4.62% late Thursday and from 4.76% a week ago.
Still, even with this week’s better-than-expected readout on inflation, some on Wall Street remain skeptical the Fed will deliver any more relief through lower interest rates this year.
On Wall Street, J.B. Hunt Transport Services dropped 6% after falling short of analysts’ expectations for profit in the latest quarter. Higher equipment and insurance-related costs helped drag on its results.
SLB jumped 5.9% after the provider of services to oilfields topped analysts' expectations for both profit and revenue in the latest quarter. It also raised its dividend by 3.6% and said it would accelerate a program to send $2.3 billion to its investors by buying back its own stock.
In stock markets abroad, indexes rallied in Europe after finishing mixed in Asia.
Chinese indexes rose modestly after authorities said the world's second-largest economy grew at a 5% annual pace last year, hitting the government's target but slowing from the year before. Strong exports and policies aimed at spurring more consumer spending and investment helped drive a boom in manufacturing, which jumped nearly 6% from a year earlier, the Chinese government reported.
Stocks rose 0.3% in Hong Kong and 0.2% in Shanghai.
Economists are forecasting a further slowing of growth this year and beyond, and President-elect Donald Trump’s threats to raise U.S. tariffs on Chinese goods have added to Beijing’s challenges as it faces a raft of moves by Washington to limit access to advanced technology, such as computer chips used in artificial intelligence.
In Tokyo, the Nikkei 225 fell 0.3% as Nintendo dropped 4.3% following the unveiling of its newest console. The company promised more details about the Switch 2 in April and said it will be released this year.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.