S&P 500 Sways on Edge of All-Time Highs – US Markets Wrap

A rally that pushed the stock market to within reach of its all-time highs struggled to build momentum ahead of next week’s Federal Reserve decision. Bitcoin paused its rebound. Bonds fell.

The S&P 500 was little changed. Expectations for a Fed rate cut remained intact despite a decline in jobless claims, a noisy data point influenced by the Thanksgiving period. Meta Platforms rose about 3.5% after it was reported that executives are considering budget cuts for the metaverse division. A small-cap gauge advanced nearly 1%.

Concerns that the surge in AI-related stocks has become overextended recently weighed on equities. However, optimism around the sector’s long-term outlook and confidence that monetary easing will support corporate earnings reinforced hopes for further market gains.

The S&P 500 ended near 6,860. The yield on the 10-year Treasury rose four basis points to 4.1%. The dollar fluctuated. Bitcoin slipped below $93,000.