01:35 PM EST, 01/03/2025 (MT Newswires) -- US benchmark equity indexes were higher intraday as markets analyzed the latest manufacturing sector data and remarks by a Federal Reserve official.

The Nasdaq Composite was up 1.4% at 19,549.3 after midday Friday, while the S&P 500 rose 1% to 5,929.1. The Dow Jones Industrial Average advanced 0.6% to 42,646.3. All sectors were in the green, led by consumer discretionary and technology.

In economic news, the US manufacturing sector's contraction improved in December as demand grew, the Institute for Supply Management's survey showed.

"On balance, the report suggests manufacturers ended the year with a hint of optimism, but they could face some pretty stiff challenges in the new year," BMO Capital Markets said.

On Thursday, a survey by S&P Global ( SPGI ) showed that the US manufacturing sector remained in contraction territory last month amid declines in output and new orders, while sentiment reached the lowest since August.

The US 10-year yield rose 1.2 basis points to 4.59% intraday Friday, while the two-year rate increased one basis point to 4.26%.

Richmond Fed President Tom Barkin that his 2025 baseline expectation for the US economy is positive amid strong consumer spending, though there are risks on the inflation front.

"I expect the story for the coming year to be more about supply and demand -- and perhaps geopolitics -- than monetary policy," Barkin said. "Were employment to falter or inflation to reemerge, we have the tools to respond."

West Texas Intermediate crude oil rose 1.5% to $74.23 a barrel intraday.

In company news, Nvidia ( NVDA ) is expected to announce new gaming products at the upcoming CES tech show, while investors will seek updates on the path of the company's generative artificial intelligence sales, Wedbush Securities said in a client note. The chip-making giant's shares were up 4.4%, the top gainer on the Dow and among the best on the Nasdaq.

Vistra ( VST ) was the best performer on the S&P 500, up 7.9%, as UBS increased its price target on the stock to $174 from $161.

Adobe (ADBE) shares fell 2.5%, the biggest decline on the Nasdaq, as UBS adjusted its price target on the software maker's stock to $475 from $525.

President Joe Biden blocked United States Steel's ( X ) proposed acquisition by Japan's Nippon Steel, citing national security concerns and supply chain risks. The US steelmaker's shares dropped 5.3%.

Gold was down 0.5% at $2,655.50 per troy ounce, while silver gained 0.5% to $30.04 per ounce.