Wall Street fired ahead on Friday with the Nasdaq Composite (^IXIC) hitting a record high thanks to rising tech stocks. The index hit 18,690.01 during the session, a rise of 1.5%. The so-called Magnificent Seven were all up after the opening bell in New York.
It came as US consumer confidence rose in October to 70.5, up from September’s 70.1, as traders look ahead to the presidential election.
According to the latest University of Michigan index of consumer sentiment, it was the third monthly rise in a row, taking confidence to its highest since April.
The increase this month was mainly due to slight improvements in buying conditions for durables, in part due to easing interest rates.
Joanne Hsu, surveys of consumers director, said: “Overall, the share of consumers expecting a Harris presidency fell from 63% last month to 57% in October. Sentiment of Republicans, who believe that a Trump presidency would be better for the economy, rose 8% on growing confidence that their preferred candidate would be the next president. In contrast, sentiment declined by 1% for Democrats.
“As usual, Independents remain in between, with a 4% gain in sentiment this month. Regardless of the eventual winner, a sizable share of consumers will likely update their economic expectations based on the results of the election.”
Meanwhile, the FTSE 100 (^FTSE) and European stocks lost ground on Friday as traders remained wary of next week’s budget while consumer confidence declined in the UK. The score slipped back to the level last seen in March this year.
According to the latest figures from GfK, the overall index score fell one point to -21 this month. Three measures declined and two rose compared with September’s announcement, it said.
Neil Bellamy, consumer insights director at GfK, said: “As the budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation. This month’s consumer confidence barometer paints a picture of people holding their breath to see what’s in store for them on 30 October.”
Stocks in London were held back in particular by weakness in the energy and housebuilding sectors.
