The market is still swayed by the Fed's recent rate cuts
While the stock market saw stocks climb, ending three consecutive days of decreases, it still closed lower week-over-week, according to CNBC.
The Dow Jones Industrial Average closed at 46,247.29, increasing by 299.97 points or 0.65%. Meanwhile the S&P 500 closed at 6,643.70, seeing an increase of 0.59% as the Nasdaq Composite ended the week at 22,484.07, adding 0.44%.
Despite the increase, all three indexes still finished lower with the Nasdaq Composite sliding down by 0.7%, followed by the S&P 500 and Dow Jones Industrial Average dropping by 0.3% and 0.2%, respectively.
Global Head of Market Strategy at TradeStation David Russell noted how the numbers by the end of the week were “good enough to pull buyers off the sidelines.
“Yesterday’s claims and GDP revision undermined the dovish narrative, but today’s PCE calms some of those worries. No news is good news,” said Russell.
According to the Federal Reserve’s Personal Consumption Expenditures inflation report, August saw a 2.7% year-over-year rise in prices. This was slightly higher than the 2.6% annual increase recorded in July, as reported by Investopedia.com.
The inflation report also saw core inflation was at a 2.9% seasonally adjusted annual rate, which met the expectations of several economists. Coinciding with the central bank’s projections, the markets were still pricing in the Federal Reserve’s recent two quarter-point rate cuts.
September also saw consumer sentiment nearly meet the expectations of economists as it was only slightly lower than the University of Michigan’s reading. However, the market was still reeling from the loss incurred by several tech giants dealing with artificial intelligence as doubt regarding the AI industry’s strength persists.
Meanwhile, the 10-year Treasury yield increased to nearly 4.19% as the US dollar index was down by 0.4%. Gold futures increased by 0.7%, reaching $3,795 while the US crude oil benchmark increased by 0.5% to $65.30 per barrel.
