Stocks are turning in a lackluster performance during trading on Friday, with the major averages showing only modest moves on the day. The S&P 500 reached a new record intraday high in early trading but has pulled back slightly below the unchanged line since then.
Currently, the major averages are posting slim losses. The S&P 500 is down 1.97 points or less than a tenth of a percent at 6,116.74, the Nasdaq is down 17.00 points or 0.1 percent at 20,036.68 and the Dow is down 76.34 points or 0.2 percent at 44,488.73.
The choppy trading on Wall Street comes as traders seem reluctant to make significant moves ahead of the Federal Reserve’s monetary policy meeting next week.
While the Fed is almost universally expected to leave interest rates unchanged, traders are likely to pay close attention to the accompanying statement for clues about the outlook for rates.
Recent economic data has led to concerns about the Fed leaving rates on hold for a prolonged period, but many economists still expect the central bank to resume cutting rates sometime in the first half of the year.
CME Group’s FedWatch Tool is currently indicating a 71.9 percent chance rates will be lower by at least a quarter point following the Fed’s June meeting.
On U.S. economic front, revised data released by the University of Michigan showed consumer sentiment unexpectedly deteriorated by more than previously estimated in the month of January.
The University of Michigan said its consumer sentiment index for January was downwardly revised to 71.1 from the preliminary reading of 73.2. Economists had expected the index to be unrevised.
The consumer sentiment index is down from the final December reading of 74.0, marking the first decrease in six months.
Meanwhile, a report released by the National Association of Realtors showed existing home sales jumped by much more than expected in the month of December, reaching their highest level since last February.
Sector News
Most of the major sectors are showing only modest moves, contributing to the lackluster performance by the broader markets.
Pharmaceutical stocks have shown a strong move to the upside, however, with the NYSE Arca Pharmaceutical Index climbing by 1.4 percent.
U.S.-listed shares of Danish drug maker Novo Nordisk (NVO) have surged by 8.2 percent after the company announced positive trial results for its obesity drug.
Telecom and gold stocks are also seeing some strength on the day, while semiconductor stocks have shown a notable move to the downside.
Texas Instruments (TXN) is leading the semiconductor sector lower after reporting better than expected fourth quarter results but providing disappointing earnings guidance for the current quarter.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday. Hong Kong’s Hang Seng Index surged by 1.9 percent and South Korea’s Kospi advanced by 0.9 percent, although Japan’s Nikkei 225 Index bucked the uptrend and edged down by 0.1 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is up by 0.3 percent, the German DAX Index is down by 0.2 percent and the U.K.’s FTSE 100 Index is down by 0.8 percent.
In the bond market, treasuries have moved back to the upside following the pullback seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.0 basis points at 4.607 percent.
Business News
U.S. Stocks Little Changed Ahead Of Next Week’s Fed Meeting
2025-01-24 16:16:24
