Nasdaq Notches 5th Straight Record, Dow Tumbles as Wall Street Gears up for Fed Week
ManuelSummary:
Meanwhile, inflation remains stubborn, with consumer prices rising last month amid more signs that President Trump's tariffs are filtering their way into the economy.
US stocks closed out a winning week mixed on Friday as Wall Street took stock of the US economy from a lofty, record-setting perch ahead of the Federal Reserve's highly anticipated decision on interest rates next week.
The tech-heavy Nasdaq Composite (^IXIC) climbed around 0.5% to notch its fifth-consecutive record as Tesla (TSLA) stock hit a seven-month high. The S&P 500 (^GSPC) fell just below the flat line, while the Dow Jones Industrial Average (^DJI) fell 0.6%.
Still, the Dow gained nearly 1% for the five trading sessions through Friday, its first win in three weeks, and the S&P 500 and Nasdaq had their best showings since early August.
Investors have taken in several weeks' worth of economic data to gain clues on the Fed's next move. Over the last week, jobs data has shown clear signals of labor market weakness, with just over 20,000 jobs added last month and weekly initial jobless claims surging to a near four-year high.
Meanwhile, inflation remains stubborn, with consumer prices rising last month amid more signs that President Trump's tariffs are filtering their way into the economy.
The University of Michigan's consumer sentiment survey released Friday showed consumer sentiment slipped more than expected in September, while long-run inflation expectations jumped to 3.9%, as Americans worried over the effects of tariffs.
But investors are betting inflation is tame enough for the Fed to cut next week — and then some.
Traders are pricing in a more than 90% chance of a quarter-point cut when the Fed holds its September meeting, according to CME Group. Beyond that, around 75% are betting the central bank will cut the equivalent of three times before the end of the year.
Source: Yahoo Finance
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