After failing to sustain an early move to the upside, stocks showed a lack of direction over the course of the trading session on Friday. The major averages bounced back and forth across the unchanged line before eventually closing narrowly mixed.
The Dow dipped 86.06 points or 0.2 percent to 43,828.06, closing lower for the seventh consecutive session. The S&P 500 edged down 0.16 points or less than a tenth of a percent to 6,051.09, while the tech-heavy Nasdaq inched up 23.88 points or 0.1 percent to 19,926.72.
The major averages also turned in a mixed performance for the week. While the Nasdaq rose by 0.3 percent, the S&P 500 slid by 0.6 percent and the narrower Dow tumbled by 1.8 percent.
The early strength on Wall Street partly reflected a positive reaction to earnings news from Broadcom (AVGO), with the chipmaker soaring by 24.4 percent on the day.
The spike by Broadcom came after the company reported better than expected fiscal fourth quarter earnings and said it expects continued strong demand for its custom AI chips.
Buying interest waned shortly after the start of trading, however, as traders look ahead to next week’s Federal Reserve meeting.
The Fed is widely expected to lower interest rates by another 25 basis points, although traders are likely to pay close attention to the accompanying statement for clues about future rate cuts.
Recent data showing inflation remains sticky has led to worries the Fed will lower rates slower than previously anticipated next year.
CME Group’s FedWatch Tool is currently indicating a 97.1 percent chance the Fed will cut rates by a quarter point next week but an 81.0 percent chance the central bank will then leave rates unchanged in late January.
On the inflation front, the Labor Department released a report showing import prices in the U.S. unexpectedly edged higher in the month of November.
Sector News
Gold stocks extended the sell-off seen in the previous session amid a continued slump by the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 2.7 percent.
Considerable weakness was also visible among steel stocks, with the NYSE Arca Steel Index tumbling by 2.6 percent to its lowest closing level in almost three months.
Computer hardware, airline and housing stocks also saw notable weakness, while semiconductor and networking stocks showed strong moves to the upside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index slumped by 1.0 percent, while China’s Shanghai Composite Index dove by 2.0 percent.
The major European markets showed more modest moves to the downside on the day. While the French CAC 40 Index dipped by 0.2 percent, the U.K.’s FTSE 100 Index and the German DAX Index both edged down by 0.1 percent.
In the bond market, treasuries moved notably lower over the course of the session, extending a recent downward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 7.5 basis points to 4.399 percent.
Looking Ahead
While the Fed’s monetary policy decision will be in the spotlight next week, traders are also likely to keep an eye on reports on retail sales, industrial production, housing starts, existing home sales and personal income and spending.
The report on personal income and spending, which is scheduled to be released next Friday, includes the Fed’s preferred readings on consumer price inflation.
Business News
U.S. Stocks Close Little Changed Following Lackluster Session
2024-12-13 21:11:17
