Wall Street Rallies Amid Rising Yields and Economic Optimism

MSCI's global equities index increased as U.S. Treasury yields climbed. Economic data and earnings elevated risky assets. The U.S. dollar strengthened while Wall Street indices rose. Manufacturing output grew, boosting sentiment, but concerns about future volatility remain amid upcoming U.S. presidential inauguration and policy uncertainties.

In a buoyant end to the week for investors, MSCI's global equities index advanced on Friday, lifted by robust economic data and positive corporate earnings. This encouraged a shift toward riskier assets, even as U.S. Treasury yields turned upward.

The U.S. dollar made gains against the yen and pared some losses from Thursday against other leading currencies, as Treasury yields, after a three-day decline, hit a two-week low before rebounding. Meanwhile, Federal Reserve figures highlighted an increase in U.S. manufacturing output.

Adding to the market optimism, Wall Street's major indices were poised to close higher, eyeing significant weekly gains, driven by speculative commentary on interest rate cuts and trailed by a positive inflation outlook.

(With inputs from agencies.)