S&P 500 closes over 5K, Barclays seals Tesco Bank deal

Equities

In a significant moment for Wall Street, the S&P 500 index surged past the 5,000-point milestone helped along by Nvidia in particular, which saw its shares reach a record high following reports of a new business unit being developed, contributing to the index's gain of 28.70 points, closing at 5,026.61. The Nasdaq Composite advanced by 196.95 points to settle at 15,990.66. However, the Dow Jones Industrial Average encountered a slight setback, dropping by 54.64 points to conclude at 38,671.69.

The UK's financial markets faced a challenging week with the FTSE 100 and FTSE 250 indices both recording losses for a second consecutive week. The FTSE 100 edged down by 0.3%, while the FTSE 250 declined by 0.2%, impacted by various factors including corporate news and economic indicators. Legal & General, a prominent player in the life insurance sector, saw its shares slide by 3.1% to a two-month low following Citigroup's decision to cut its price target.

Barclays experienced a minor dip of 0.6% after announcing the acquisition of most of Tesco's banking operations, a deal valued at up to 600 million pounds. S&U, a motor finance firm, emerged as the week's most significant decliner within the FTSE smallcap index, tumbling by 7.9% after its profit forecast fell short of market expectations. Meanwhile, Victrex, a specialty chemicals maker, saw its shares rise by 0.8%, despite a fall in first-quarter revenue.

In the broader European context, the pan-European STOXX 600 index slightly declined by 0.1%, though it managed to secure a marginal weekly gain of 0.2%. L'Oreal's shares took a significant hit, dropping by 7.6% after reporting disappointing fourth-quarter sales growth.

Forex & Commodities

Federal Reserve officials reiterated their stance on maintaining the current interest rate levels last week, which contributed to the yen reaching a 10-week low against the dollar as expectations for a rapid rate hike by the Bank of Japan were scaled back.

In the commodities market, gold was on track for a weekly decline, pressured by the increase in US Treasury yields which rose to a two-week high. This increase in yields rendered the non-yielding bullion less attractive, with spot gold decreasing by 0.5% to $2,022 per ounce. Meanwhile, oil prices began the new week on a lower note, with Brent crude futures dropping by 0.4% to $81.90 a barrel, following Israel's announcement of concluding its strikes in southern Gaza.