Friday Markets: S&P 500 Hits Record High, Alibaba Surges 15%, Oil at $71.30

The S&P 500 hit a record high on Thursday, climbing 0.4% to an all-time intraday and closing high. Both the Dow Jones Industrial Average and Nasdaq Composite also rose by 0.6%.

This market surge has been bolstered by optimistic economic data, setting all three indexes on course for a winning week. Investors are now eagerly awaiting more updates, including U.S. personal income and consumer sentiment data, expected to drop on Friday.

Premarket Movers:

Chinese Tech Stocks Rebound on Central Bank Action

After a prolonged slump, Chinese tech stocks rallied significantly this week.

Beaten-down names like Alibaba (NYSE:BABA) saw gains not observed in over a year. Alibaba’s shares closed above $100 for the first time since last August, while Tencent’s stock reached its highest level in over two-and-a-half years. This surge followed announcements from the People’s Bank of China, which introduced stimulus measures aimed at reigniting growth in the world’s second-largest economy.

The central bank cut the reserve requirement ratio—the amount of cash banks must hold in reserve. It also unveiled plans to support China’s struggling property market by extending existing measures for two more years and reducing interest rates on current mortgages. These actions aim to spur consumer spending and investment, offering relief to Chinese tech companies that are highly sensitive to the country's economic performance.

Other Chinese tech stocks such as JD.com (NASDAQ:JD) and Baidu (NASDAQ:BIDU) also recorded strong gains, further reinforcing confidence in the sector’s recovery.

U.S. Personal Spending and Inflation Data in Focus

As the week draws to a close, U.S. markets are keenly awaiting new data on consumer spending and inflation. These numbers could offer fresh insights into the health of the U.S. economy, especially as the Federal Reserve considers further interest rate cuts later this year.

Personal spending, which makes up more than two-thirds of U.S. economic activity, is projected to have grown by 0.3% in August, a slowdown from the 0.5% rise in July.

The personal consumption expenditures (PCE) price index, a key inflation measure monitored by the Fed, is expected to increase by 0.2% in August, matching July’s pace. Year-over-year, this number is expected to cool from 2.5% to 2.3%. When excluding volatile items like food and fuel, the core PCE index is projected to remain steady month-over-month at 0.2% but accelerate slightly on an annual basis to 2.7%.

Oil Prices Edge Up on China Stimulus and Supply Shifts

Oil prices saw a slight rise on Friday, driven by both China’s stimulus efforts and developments in global oil production. Brent crude futures added 0.3%, reaching $71.30 per barrel, while U.S. West Texas Intermediate crude futures rose by 0.4% to $67.94 a barrel.

In Libya, a resolution of a dispute over the control of the country's central bank is expected to lead to a significant increase in oil production. Analysts estimate that over 500,000 barrels per day (bpd) of Libyan supply could soon return to the global market. Additionally, OPEC+ plans to restore 180,000 bpd of the deep production cuts that have been in place, beginning in December.