Wall Street erases the negative trend and moves into positive territory. The Dow Jones Industrial Average rebounds to close a difficult week in which the index plummeted 1,100 points in a single day and posted its longest losing streak since the 1970s. Softer-than-expected inflation data helped fuel Friday’s rebound.
The Dow, made up of 30 stocks, rose 328 points, or 0.8%. The S&P 500 also advanced 0.8%, while the Nasdaq Composite gained 0.7%.
The November reading of the personal consumption expenditure (PCE) price index, the Federal Reserve’s preferred inflation gauge, rose 2.4% year-over-year. This increase was slightly smaller than economists expected and helped alleviate some of the pessimism generated earlier in the week, when the Fed indicated it would reduce the pace of rate cuts in the future due, in part, to persistent inflation. .
This Friday after the House of Representatives will vote against a spending bill backed by Donald Trump, further increasing the odds of a government shutdown this weekend.
The sector that drives the New York market this Friday is Real Estate, which climbs almost 2%. Followed by basic materials, almost 1%, and the financial sector.
Investors also digested key inflation data (a Fed favorite) that showed a slowdown in price growth during the month of November, after the Federal Reserve reduced the amount of cuts it expects for next year.
A Federal Reserve-induced sell-off earlier in the week left major indices in decline. And although stocks mostly stabilized on Thursday, the threat of a government shutdown, along with more threats of Trump’s tariffs on Europe, pressured global markets overall.
Wall Street: what the market analyzes
“I told the European Union that they must make up their tremendous deficit with the United States by purchasing on a large scale our oil and gas,” Trump said in a post on Truth Social. “Otherwise it will be FEES all the way!”
Global semiconductor stocks fell, with Europe’s ASML (ASML) down more than 1% early Friday, while Taiwan’s TSMC (TSMC34.SA) fell nearly 3%. US companies such as Nvidia (NVDA), AMD (AMD) and Broadcom (AVGO) were also under pressure.
The price of Bitcoin (BTC-USD) retreated, falling below $95,000 per token due to record ETF outflows.
In individual stocks, Novo Nordisk (NVO) plunged about 20%, its biggest drop in more than two decades, after its obesity drug trial disappointed investors. Shares of Tesla (TSLA) fell 6% following the recall of approximately 700,000 vehicles in the US due to a defect in the tire pressure monitoring system.
Meanwhile, investors received another piece of information on inflation with the release of the core personal consumption expenditure (PCE) index, the Federal Reserve’s preferred gauge.
The latest reading showed price increases fell month-on-month in November but still remained elevated as the central bank struggles to reduce inflation to its 2% target.
Source: Ambito
