Markets Stall Near Record Highs Ahead of Key Fed Meeting – US Market Wrap
The stock market edged higher but fell short of records on Friday, as traders hesitated from placing huge wagers ahead of the Federal Reserve’s interest-rate-lowering decision next week. Treasuries are poised for their worst week since June.
The S&P 500 rose 0.2%, trimming back from an earlier 0.6% gain that brought it within a whisker of October’s all-time high. The Nasdaq 100 increased 0.4%, but the Russell 2000 index of smaller firms fell after closing at a high on Thursday. Treasuries extended losses, with the 10-year yield rising to 4.14%.
A delayed reading of the Federal Reserve’s preferred inflation gauge did little to change Wall Street’s expectations for a rate decrease next week, with swap bets pointing to further easing until 2026.
The core personal consumption expenditures price index, which excludes food and energy, up 0.2% in September, matching experts’ estimates of a third consecutive 0.2% gain in the Fed’s preferred core index. That would keep the year-over-year figure just at 3%, indicating that inflationary pressures are stable but persistent.
Meanwhile, sentiment towards technology companies improved after Nvidia’s partner Hon Hai Precision Industry announced excellent sales. Moore Threads Technology, a leading Chinese AI chipmaker, soared 425% on its Shanghai debut. Netflix shares fell after the company announced a partnership with Warner Bros. Discovery.
