U.S. equities and stock exchange traded funds strengthened Friday with industrials and consumer sectors bolstering markets.
The S&P 500 Index, along with related funds including the SPDR S&P 500 ETF (NYSEARCA:SPY), iShares Core S&P 500 ETF (NYSEARCA:IVV) and Vanguard 500 Index (NYSEARCA:VOO), were 0.3% higher Friday.
Industrial companies and consumer discretionary names in the S&P 500 both increased 0.8%.
Among the biggest movers, Nike shares (NYSE: NKE) jumped 10.1% to a three-month high after the world’s largest footwear maker announced a pilot program with Amazon (NasdaqGS: AMZN) to sell a limited product assortment on the website, Reuters reports.
Economic data also revealed U.S. consumer spending modestly increased in May while inflation cooled. However, the University of Michigan also showed consumer sentiment index was at its lowest since November.
“In the next four to six weeks we’ll get another set of economic data that will tell us if the Fed is justified in raising rates again this year,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told Reuters.
The Federal Reserve expects to further raise interest rates this year despite a stubbornly low inflation below its 2% target. Investors have been watching for improving economic data to gauge where inflation and the economy is heading, along with the Fed’s potential response.
Meanwhile, the technology sector was up 0.3% Friday as the segment was on pace for one of its worst weekly losses in six months on worries over the sector’s valuations, which pushed investors to more defensive stocks.
“Tech has gone too far too fast and was due for a correction,” Sandven said. “The sector’s valuation is elevated but hasn’t reached a point of extreme concern because it is still a ‘buy-the-dip’ sector and is expected to grow further.”
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