Stocks experienced an initial upswing early in Friday's session but have since delivered a rather indifferent performance, with major indices retreating from their earlier highs, hovering near their starting points. Currently, the indices show a mixed stance: the Dow Jones Industrial Average has risen by 27.74 points, or 0.1%, to stand at 43,941.86; conversely, the Nasdaq Composite has dipped 28.21 points, or 0.1%, to 19,874.63; and the S&P 500 has edged down by 0.75 points, less than 0.1%, to 6,050.50.
The initial strength on Wall Street can be attributed partially to Broadcom's (AVGO) earnings report, which buoyed its shares by 19.6%. This surge followed the chipmaker's announcement of better-than-expected fiscal fourth-quarter earnings and a positive forecast for ongoing demand for its custom AI chips.
However, investor enthusiasm waned shortly after market open as attention shifted to next week's Federal Reserve meeting. The market anticipates another interest rate reduction of 25 basis points, yet traders will be closely scrutinizing the accompanying statement for hints on forthcoming rate adjustments. Persisting inflation has raised concerns that rate cuts may proceed more slowly than previously anticipated in the upcoming year.
According to CME Group's FedWatch Tool, there is a 96.9% probability that the Fed will lower rates by a quarter-point next week, but a 78.8% likelihood of maintaining rates in late January.
On the inflation front, the U.S. Labor Department issued a report today indicating an unexpected uptick in import prices for November.
**Sector Overview**
Gold stocks continue to decline amidst a downturn in gold prices, pulling the NYSE Arca Gold Bugs Index down by 2.9%. Steel stocks are also displaying marked weakness, as evidenced by the NYSE Arca Steel Index, which has plunged 1.8% to a near three-month low. Additionally, computer hardware, housing, and biotechnology stocks are showing significant downtrends, contrasting with the robust gains seen in semiconductor and networking stocks.
**International Markets**
In Asia, stock markets largely fell on Friday, with Japan's Nikkei 225 Index dropping by 1.0% and China's Shanghai Composite Index plunging by 2.0%. In Europe, markets showed modest declines, with Germany's DAX Index falling by 0.2%, and both the U.K.'s FTSE 100 Index and France's CAC 40 Index down by 0.3%.
**Bond Market**
In bond markets, there is a continuation of the recent downtrend in treasuries, leading to an increase in yields. The yield on the benchmark ten-year note, inversely related to its price, has risen by 5.1 basis points to 4.377%.
The material has been provided by InstaForex Company -
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