Stock market today: Wall Street gains as Treasury market stabilizes, US government averts shutdown

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<p>FILE - Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, on Jan. 11, 2024. Asia markets mostly advanced Friday, Jan. 19, after Wall Street recouped most of the week PHOTO CREDIT: Ahn Young-joon - staff, ASSOCIATED PRESS' src='https://biztimes.biz/wp-content/uploads/2024/01/65aa860d0b3b7.image_.jpg'/>

FILE - Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, on Jan. 11, 2024. Asia markets mostly advanced Friday, Jan. 19, after Wall Street recouped most of the week's earlier losses and Japan reported slowing inflation, which may keep its ultra-low interest rates steady. (AP Photo/Ahn Young-joon, File)

PHOTO CREDIT: Ahn Young-joon - staff, ASSOCIATED PRESS
<p>FILE - People walk in front of an electronic stock board showing Japan PHOTO CREDIT: Eugene Hoshiko - staff, ASSOCIATED PRESS' src='https://biztimes.biz/wp-content/uploads/2024/01/65aa8611c70f5.image_.jpg'/>

FILE - People walk in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm on Jan. 15, 2024, in Tokyo. Asia markets mostly advanced Friday, Jan. 19, after Wall Street recouped most of the week's earlier losses and Japan reported slowing inflation, which may keep its ultra-low interest rates steady. (AP Photo/Eugene Hoshiko, File)

PHOTO CREDIT: Eugene Hoshiko - staff, ASSOCIATED PRESS
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Posted By: By ZIMO ZHONG and MATT OTT - Associated Press January 19, 2024

Wall Street headed higher early Friday as markets continue to recoup the week’s earlier losses as the U.S. government, for now, dodged a potential partial shutdown.

Futures for the Dow Jones Industrial Average and the S&P 500 each rose 0.6% before the bell.

On Thursday, Congress sent President Joe Biden a short-term spending bill, averting a looming partial government shutdown and funding federal agencies into March. It was the third stopgap funding measure in recent months.

The bill extends current spending levels and buys time for the House and Senate to work out their differences over full-year spending bills.

Markets were broadly steadier as Treasury yields in the bond market slowed their jump from earlier in the week. Yields had been climbing as traders pushed back their forecasts for how soon the Federal Reserve will begin cutting interest rates. Higher yields in turn undercut prices for stocks and raise the pressure on the economy.

The yield on the 10-year Treasury steadied Friday at 4.14%, right where it was late Thursday.

The Fed has indicated it will likely cut rates several times in 2024 because inflation has been cooling since its peak two summers ago, meaning it may not need as tight a leash on the economy and financial system.

Spirit Airlines jumped close to 36% after the budget carrier pre-announced strong fourth-quarter revenue and improved margins, boosted by a strong holiday travel season.

In Europe at midday, Britain’s FTSE 100 climbed 0.5% and Germany’s DAX rose 0.3%. France’s CAC 40 was virtually unchanged.

In Asia, Tokyo’s Nikkei 225 index climbed 1.4% to 35,963.27.

Japan’s inflation slowed for a second straight month, increasing the chance that the Bank of Japan will keep its ultra-low interest rates unchanged at its meeting next week. The country’s annual headline inflation rate has remained above the BOJ’s 2% target since April 2022, with a gradual decline observed from its peak of 4.3% last year to the rate of 2.6% in December that was reported Friday.

Hong Kong stocks were on track for their third consecutive week of losses as investors remain worried about the gloomy economic prospects. The Hang Seng in Hong Kong lost 0.5% to 15,368.69 and the Shanghai Composite index was down nearly 0.5% at 2,832.28.

In South Korea, the Kospi added 1.3% to 2,472.74. Australia’s S&P/ASX 200 advanced 1% to 7,421.20. In Bangkok, the SET was up 0.2%. Taiwan’s Taiex gained 2.6%, with Taiwan Semiconductor Manufacturing Co. adding 6.5%.

In energy trading, benchmark U.S. crude lost 30 cents to $73.65 a barrel. Brent crude, the international standard, gave up 29 cents to $78.81 a barrel.

The U.S. dollar inched down to 148.04 Japanese yen from 148.15 yen. The euro cost $1.0886, up slightly from $1.0874.

On Thursday, the S&P 500 rose 0.9% to 4,780.94 following back-to-back drops that started the holiday-shortened week. The Dow Jones Industrial Average gained 0.5% to 37,468.61, and the Nasdaq composite jumped 1.3% to 15,055.65.

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