US Stocks Mixed as Investors Await Fed Decision; Tech Sector Leads Gains
U.S. stocks showed mixed performance on Friday as investors braced for the Federal Reserve’s upcoming interest rate decision. The technology sector, particularly Broadcom, propelled the Nasdaq higher despite ongoing rate pressures.
The Nasdaq 100 edged up slightly, while the S&P 500 remained flat. The Dow Jones Industrial Average declined, marking its seventh consecutive day of losses. For the week, the S&P 500 and Dow Jones saw slight declines, while the Nasdaq 100 gained nearly 1%.
Broadcom’s strong quarterly earnings report boosted tech stocks, with the company’s shares surging 24% and reaching a $1 trillion valuation. The positive outlook for Broadcom’s AI business contributed to the sector’s strength.
However, rising interest rates continued to pressure stocks, with the 10-year U.S. Treasury yield increasing by approximately 25 basis points. Investors are closely watching the Federal Reserve’s FOMC meeting next week, which is expected to result in a 25-basis point rate cut, potentially characterized as a “hawkish cut.”
Market veteran Ed Yardeni suggested the possibility of a pause in rate cuts early next year. Bank of America noted that next week’s rate cut is “fully priced” into the market, with potential for hawkish guidance due to persistent inflation.
The CME Fed Watch Tool now indicates expectations for two 25-basis point rate cuts next year, down from three previously anticipated.
Investors are preparing to analyze significant economic data next week, including U.S. retail sales, housing starts, building permits, and a second revision to third-quarter GDP figures.
At the close, the S&P 500 settled at 6,051.09, down 0.01%. The Dow Jones Industrial Average finished at 43,828.06, down 0.20% (-86.06 points), while the Nasdaq composite closed at 19,926.72, up 0.12%.
In commodities, West Texas Intermediate crude oil rose 1.66% to $71.18 per barrel, and Brent crude increased 1.38% to $74.42 per barrel. Gold decreased 1.57% to $2,666.90 per ounce. The 10-year Treasury yield climbed 6 basis points to 4.400%, and Bitcoin increased 1.55% to $101,588.
As markets navigate uncertain terrain, investors remain focused on upcoming economic indicators and central bank decisions to guide their strategies in the weeks ahead.
By
