The Dow and S&P 500 fell, while the Nasdaq rose, driven by strong tech stock performances. Broadcom’s valuation hit $1 trillion for the first time.
Stock Market Movements
U.S. stocks stayed steady on Friday the 13th, with investors awaiting the Federal Reserve’s upcoming policy decision. The S&P 500 slipped 0.16 points, essentially flat, closing at 6,051.09. It ended the week down 0.6%, breaking a three-week winning streak.
The Dow dropped 0.2% on Friday, losing 86 points to close at 43,828.06. It marked its seventh consecutive daily loss, the longest streak since 2020. The Dow ended the week 1.8% lower, its largest weekly decline since October.
The Nasdaq rose 0.12%, adding 23.88 points to close at 19,926.72. For the week, it climbed 0.3%, even after retreating from its record high of 20,061.65.
Inflation, Interest Rates, and Tech Sector Surge
The Federal Reserve’s last meeting of the year concludes on Wednesday. Markets predict a 97% chance of a 0.25% rate cut, lowering the federal funds rate to 4.25%-4.5%. Future rate changes remain uncertain as inflation concerns linger.
Annual consumer inflation rose 2.7% in November, the largest increase since July. Core inflation, excluding food and energy, stayed at 3.3%. Both measures remain above the Fed’s 2% target.
Wholesale prices signaled inflation pressures. Wholesale prices increased 3% year-over-year, while core wholesale prices climbed 3.5%, both the highest since February 2023.
U.S. Treasury yields rose for a fifth straight session. The 10-year yield exceeded 4.4%, and the 2-year yield reached 4.247%, reflecting market caution over inflation.
Tech giants led Nasdaq’s rise, with Apple, Nvidia, Microsoft, Amazon, Meta, Alphabet, Broadcom, and Tesla performing strongly. Several of these companies hit record highs during the week.
Tesla’s stock reached its first record close in three years, rising 65% since the election. Investors view CEO Elon Musk’s relationship with President-elect Donald Trump as a potential growth driver.
Broadcom’s valuation hit $1 trillion, fueled by a 24% stock surge on Friday. The rally followed a positive first-quarter revenue forecast and optimism over AI-related growth.
CEO Hock Tan forecasted $60 billion to $90 billion in AI-driven revenue by 2027, more than quadrupling its current market size.
