Traders at work at the New York Stock Exchange on December 17, 2024.
new york stock exchange
of Dow Jones Industrial Average It rebounded on Friday, capping a tough week in which the index fell 1,100 points in one day, snapping its longest losing streak since the 1970s. Some weaker-than-expected inflation data also helped Friday’s rebound.
The Dow 30 rose 815 points, or 1.9%. of S&P500 Add 1.8%; Nasdaq Composite.
The November reading of the Personal Consumption Expenditure Price Index, the Federal Reserve’s preferred measure of inflation, rose 2.4% from a year earlier. That was slightly below economists’ expectations and helped offset some of the bearish mood created earlier this week when the Fed announced it would scale back future rate cuts, in part due to stubborn inflation.
Stocks that posted losses in early trading led the rally on Friday, including Nvidia and Tesla. Tesla was last up about 1%. Nvidia rose 2%.
The Dow Jones Industrial Average (30 stocks) is expected to fall about 2% for the week.
Chicago Fed President Austan Goolsby told CNBC’s Steve Reisman he was encouraged by Friday’s inflation numbers and said interest rates could still fall next year despite the central bank’s cautious stance. .
“We’re still on our way to 2% and we don’t want to make too much profit in any month, at least in this new month, but I think this suggests that we’ve had a solid couple of months. “I’m hoping it’s more of a collision than a change in trajectory,” Goldsby said. Major indexes soared during the day following Goolsby’s comments.
It’s a positive end to a tumultuous week. During Thursday’s trading session, Dow They rose 15 points and ended a 10-day losing streak, their longest since 1974. The small gain came a day after the Dow Jones Industrial Average plunged 1,100 points on Wednesday. The decline was triggered by the Federal Reserve cutting interest rates only two times next year instead of four as originally expected.
“Today calmed people down,” said Tom Fitzpatrick, managing director of RJ O’Brien & Associates. “There is little chance of a downside trigger at this point with Christmas and the New Year ahead, so the movements of the past few days may be reversed a bit.”
Friday night’s failure Thursday night of a House Republican plan to fund the government for three months and avert a shutdown remains a bit of a pressure on sentiment. If no deal is reached, a partial closure is scheduled to begin Friday night.
After Friday’s jump, the Dow Jones Industrial Average was on pace to drop 2% for the week.
– CNBC’s Sarah Min and Christina Wilkie contributed to this report.
