Wall Street Closes Mixed, with Records for Nasdaq and S&P 500
Wall Street’s major indices closed the week with mixed results on Friday. The Dow Jones Industrial Average ended on a negative note, while the S&P 500 and Nasdaq Composite posted gains, both achieving new record highs, buoyed by expectations of Federal Reserve rate cuts.
The Dow Jones fell 0.28% to close at 44,642.52 points, marking a negative week for the blue-chip index. In contrast, the S&P 500 gained 0.25%, finishing at 6,090.27 points, and the Nasdaq Composite climbed 0.81% to end at 19,859.77 points.
Investors closely analyzed the latest U.S. labor market data to refine their expectations for the Federal Reserve’s next move. According to the CME’s FedWatch tool, there is now an 85% probability of a 25-basis-point rate cut in December.
Labor Market Data
The U.S. Bureau of Labor Statistics (BLS) reported that 227,000 non-farm jobs were added in November, surpassing analysts’ forecasts. This figure represents a significant rebound from the 36,000 jobs added in October, a month impacted by hurricanes and strikes.
Despite the labor market’s resilience and November’s strong job growth, these developments did not shift market expectations for continued easing of monetary policy, supported by declining inflation trends.
Lower interest rates typically reduce bond yields, making equities more attractive, while also easing credit conditions for companies, particularly benefiting technology firms, which are often valued based on future growth potential.
For the week, the Dow Jones saw a slight decline of 0.60%, while the SPX 500 gained 0.96%, and the Nasdaq Composite surged 3.36%, driven by strong performances from major tech stocks such as Tesla (+12.77%), Amazon (+9.21%), and Meta (+8.61%).
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