03:45 PM EST, 01/03/2025 (MT Newswires) -- US benchmark equity indexes rose ahead of Friday's close as markets analyzed the latest manufacturing sector data and remarks by a Federal Reserve official.

The Nasdaq Composite was up 1.7% at 19,602.3, while the S&P 500 gained 1.2% to 5,940.1. The Dow Jones Industrial Average advanced 0.8% to 42,721.3. All sectors advanced, led by consumer discretionary.

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

The US 10-year yield rose 2.5 basis points to 4.6%, while the two-year rate increased 3.3 basis points to 4.28%.

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 inflation.

West Texas Intermediate crude oil rose 1.3% to $74.06 a barrel.