US stocks hovered near record highs on Friday, with the Nasdaq lagging as post-election euphoria ebbed and China’s latest stimulus plan fell flat.
The S&P 500 (^GSPC) rose 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) dropped roughly 0.1%. The Dow Jones Industrial Average (^DJI) rose 0.3%.
Stocks drifted higher to end to a stellar week of gains driven by optimism that President-elect Donald Trump’s policies will boost the economy. But the initial “Trump trade” rush appears to be fizzling out as Wall Street questions whether Trump will be able to push through his ambitions policies. The dollar (DX=F) and Treasury yields, for instance, have given up many of their post-election gains.
Even so, Wall Street major gauges are still on track for strong weekly wins after racking up more records on Thursday as the Federal Reserve delivered the expected interest-rate cut. The S&P 500 is closing in on crossing the 6,000 level for the first time.
Meanwhile Paramount Global (PARA) reported third quarter earnings on Friday that showed further improvement in its streaming business it gets ready to combine with Skydance Media.
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Major averages drift higher, Nvidia officially part of the Dow
US stocks flirted around their record highs on Friday as Nvidia (NVDA) following the latest rate cut announced by Federal Reserve.
Market euphoria following a Trump White House victory seemed to drift as the Nasdaq Composite (^IXIC) was little changed. The S&P 500 (^GSPC) rose 0.1%, while the Dow Jones Industrial Average (^DJI) gained 0.3%
On Thursday the Federal Reserve announced a 25 basis point cut, a move widely anticipated by the markets.
On Friday AI chip heavyweight Nvidia (NVDA) replaced semiconductor giant Intel (INTC) as one of the Dow’s 30 components.
The new addition should give the blue-chip index an added boost. Intel shares are down roughly 45% year-to-date while Nvidia is up more than 200%.
Paint maker Sherwin-Williams (SHW) also replaced Dow Inc. (DOW) as one of the components of the major average.
Today at 1:34 PM UTC
Good morning. Here’s what’s happening today.
Here’s a look at the key market themes as you wake up today: China’s stimulus falls short, Paramount misses earnings despite streaming growth, and Nvidia hits a $3.6T market cap. Meanwhile, investors have pulled back on Trump trades, uncertain about his tariff plans.
Economic data: University of Michigan consumer sentiment, (November preliminary)
