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US stocks ended the weekend higher despite AI trading showing signs of fatigue.
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The Dow Jones Industrial Average led the way this week, rising 1.5%, while the S&P 500 and Nasdaq 100 both added about 0.5%.
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Some economists are urging the Fed to cut interest rates in July amid growing risks of a recession.
U.S. stocks closed mixed on Friday but ended the week higher despite signs of a slowdown in artificial intelligence trading.
Leading the market gains this week was the Dow Jones Industrial Average, which rose about 2%, while the S&P 500 and Nasdaq 100 both ended the week up about 0.5%.
Nvidia’s stock surge took a breather on Thursday and Friday, with the stock price down about 10% from an intraday high of $140.76.
Other popular AI stocks, including Broadcom, Dell and Supermicro Computer, also fell between 1% and 3% during Friday’s trading session.
Investors are keeping a close eye on new economic data as rumors grow that the Federal Reserve may cut interest rates in July following a surge in weekly jobless claims.
According to the CME FedWatch tool, the chances of a July rate cut are currently just 10%, but one economist sees the chances of a rate cut at the July policy meeting as nearly 60%.
Such measures by the Fed would be aimed at preventing a recession as inflation continues to trend downward.
Economist Claudia Thurm told CNBC on Friday that the Fed is “playing with fire” by keeping interest rates high for too long.
“My base case is not a recession,” Sam said. “But it’s a real risk and I don’t understand why the Fed is pushing that risk. I don’t know what the Fed is waiting for.”
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:
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West Texas Intermediate crude oil fell 0.78% to $80.66 a barrel, while the international benchmark Brent crude was down 0.60% to $85.20 a barrel.
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Gold fell 1.46% to $2,334.50 per ounce.
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The yield on the 10-year Treasury note was flat at 4.26%.
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Bitcoin fell 1.25% to $64,034.
Read the original article on Business Insider
