- U.S. stocks ended the week mixed on Friday, following inflation concerns and Nvidia’s earnings report.
- Investors will be watching next week’s PCE data to gauge which direction inflation is headed.
- Nvidia’s profits boosted tech stocks, helping lift the Nasdaq 100 Index broadly this week.
U.S. stocks rose on Friday but ended the week mixed as inflation concerns flared following the release of upbeat economic data and Nvidia’s strong first-quarter earnings report.
The Dow Jones Industrial Average fell 2.3% this week, while the S&P 500 was little changed and the Nasdaq 100 rose about 1.4%.
Strong economic data from the Purchasing Managers’ Index (PMI) released on Thursday has raised renewed inflation concerns, while strong indicators for the services and manufacturing sectors suggest the Federal Reserve will keep interest rates high for a longer period.
According to the CME FedWatch tool, the possibility of a Fed rate cut has been postponed from September to the November FOMC meeting.
Investors will be focusing on PCE data next week to gauge which direction inflation is moving.
“The PCE report due next Friday could provide a clear positive catalyst for the market if the data is weaker than expected. If not, markets may be content that inflation remains somewhat contained even if PCE remains stable, but yesterday’s market actions suggest that both investors and traders are losing patience with the Fed’s inability to contain ever-rising prices,” said Quincy Krosby, chief global strategist at LPL Financial.
Meanwhile, Nvidia’s strong first-quarter earnings report on Wednesday helped fuel a surge in AI-related tech stocks, helping the Nasdaq 100 Index finish the week at an all-time high. The chipmaker’s shares soared to a record high above $1,000 after it reported better-than-expected results on both profit and sales, raising hopes for the next generation of Blackwell chips.
As of the close of trading at 4pm on Friday, U.S. stock indexes were as follows:
Here’s something else that happened today:
Commodities, Bonds and Cryptocurrencies:
- West Texas Intermediate crude rose 1.11% to $77.72 a barrel, while the international benchmark Brent crude rose 0.92% to $82.11 a barrel.
- Gold fell 0.11% to $2,334.60 per ounce.
- The yield on the 10-year Treasury note fell 1 basis point to 4.47%.
- Bitcoin rose 1.76% to $69,142.
