NEW YORK, New York - A rally in U.S. regional banking stocks underpinned a surprising rebound on American stock markets Friday.
The U.S. dollar, however, continued its downward trend.
"When the whole news cycle started, it was sort of explained away as a unique circumstance for certain institutions. The reality is that liquidity is a universal challenge," Liz Young, head of investment strategy at SoFi cautioned Friday.
"The issue originally was that deposit flight was occurring, but now that the pressure is no longer necessarily deposit flight. It's this mark to market of the securities on all their books," she said.
"So I don't think that this news cycle isn't necessarily over. I also don't think it dies of natural causes in the sensethat] it heats up and then just kind of cools down with no effect," Young added.
Buying sentiment was helped too by positive news on the jobs front.
"Today, the Bureau of Labor Statistics reported that the American economy added 253,000 jobs in the month of April, and the unemployment rate ticked down to a historic low mark of 3.4 percent, the lowest since May 1969. The last time the unemployment rate was lower was October 1953," Assistant Secretary of the U.S. Labor Department Julie McClain said in a statement Friday.
"Average hourly earnings are up 4.4 percent over the year, and production and nonsupervisory employees are seeing average hourly earnings up 5 percent in that period, helping our workers keep pace with increased costs. Combined with steady increases in health care, construction, transportation, and professional and business services jobs this month, this puts Americans on an increasingly solid footing to meet their families' needs."
"Women are making historic contributions to our country's economic well-being. For prime-age women, the labor force participation rate was 77.5 percent in April, the highest rate since this measurement began in 1948. Additionally, in March, Black unemployment hit an all-time low at 5.0 percent. In April, it reached another: 4.7 percent," the statement said
In New York, the Standard and Poor's 500 climbed 75.03 points or 1.85 percent to 4,136.25.
The Dow Jones Industrial Average advanced 546.64 points or 1.65 percent to 33,674.38.
The tech-heavy NASDAQ Composite surged 269.01 points or 2.25 percent to close at 12,235.41.
The U.S. dollar ended the day and the week lower on Friday after central banks on three continents raised official interest rates by a quarter point.
The euro rose 0.07 percent Friday to 1.1017.
The Japanese yen ended the day slightly lower, losing p.41 percent to 134.82.
The Canadian dollar was sharply higher, gaining 1.12 percent to 1.3387.
The British pound advanced to 1.2635 Friday, up by 0.50 percent. The Swiss franc pair also saw gains, ending the day at 0.8905, ahead by 0.57 percent.
The Australian dollar jumped to 0.6748, a gain of 0.85edged up 0.19 percent to 0.6291.
Global stock markets closed higher on Friday, with several major indices posting gains of more than 1 percent.
In London, the FTSE 100 rose by 0.98 percent to 7,778.38, while in Paris, the CAC 40 gained 1.26 percent to reach 7,432.93. Meanwhile, Frankfurt's DAX PERFORMANCE-INDEX added 1.44 percent to finish at 15,961.02.
Other indices posted mixed results, with the Top 40 USD Net TRI Index up 0.57 percent, the Russell 2000 up 2.39 percent, and the CBOE Volatility Index down 14.19 percent.
In Asia, the Hang Seng Index in Hong Kong rose by 0.50 percent to 20,049.31, while the Nikkei 225 in Tokyo gained 0.12 percent to close at 29,157.95. However, the SSE Composite Index in Shanghai fell by 0.48 percent to 3,334.50, and the Shenzhen Index dropped 0.82 percent to 11,180.87.
Elsewhere, the S&P/ASX 200 in Sydney rose 0.37 percent to 7,220.00, while the S&P/TSX Composite index in Toronto climbed 1.50 percent to 20,542.03.
The ESTX 50 PR.EUR gained 1.25 percent, the Euronext 100 Index rose 1.37 percent, and the BEL 20 in Brussels added 1.67 percent.
Meanwhile, the MOEX Russia Index fell by 0.19 percent, while the NYSE COMPOSITE (DJ) in New York rose 1.74 percent and the NYSE AMEX COMPOSITE INDEX gained 2.83 percent. The STI Index in Singapore fell by 0.08 percent, and the ALL ORDINARIES in Sydney added 0.34 percent.
Finally, the S&P BSE SENSEX in Mumbai dropped by 1.13 percent, while the IDX COMPOSITE in Jakarta fell by 0.82 percent and the FTSE Bursa Malaysia KLCI in Kuala Lumpur added 0.35 percent. The S&P/NZX 50 INDEX GROSS in Wellington fell by 0.66 percent, and the KOSPI Composite Index in Seoul dropped 0.02 percent. The TSEC weighted index in Taipei rose 0.11 percent, while the IBOVESPA in Sao Paulo surged by 2.89 percent. The IPC MEXICO in Mexico City gained 0.52 percent, and the S&P/CLX IPSA in Santiago was unchanged. The TA-125 in Tel Aviv fell 0.35 percent, and the EGX 30 Price Return Index in Cairo dropped 0.03 percent.