All of Wall Street’s major indexes looked set to end the last trading day of the week in the red, but the mood has changed in the last hour.
The S&P 500 rose 0.48% to 3,965.48, while the Nasdaq technology index rose 0.01% to 11,146.06. The sector heavy Dow Jones rose 0.60% to 33,747.14.
However, all indices finished the week in the red. The Dow Jones is down 0.01% week over week, while the S&P 500 is down 0.69%. The Nasdaq is down 1.57%. All indices are otherwise positive for November.
Boston Fed chief Susan Collins said on Friday that “all possible hikes” in interest rates were possible when the Fed is expected to hold its next interest rate meeting in December. Collins’ comments echoed remarks by other Fed chiefs, who insisted earlier this week that further monetary policy tightening was needed to curb inflation.
– The market is digesting current data that has arrived recently, such as that inflation has arrived better than expected. We believe that the market rally followed by the inflation data cannot be explained by fundamental factors. The market is also pricing in a soft landing, which we don’t think will happen. So now we see markets readjust as Fed heads speak up and confirm their stance, says Homrich Berg investment manager Stephanie Lang, according to CNBC.
Government bonds soared throughout Friday. The interest on 10-year US Treasuries rose to 3.82%. The Volatility Index – VIX – fell 3.89% as of 11pm.
Movements
Facebook owner Meta, Amazon, Netflix, Apple and Alphabet (also known as FAANG stock), had a mixed day in the stock market:
- Facebook rose 0.54% to 112.05.
- Amazon fell 0.75% to 94.14.
- Apple rose 0.38% to 151.29.
- Netflix fell 2.47% to 287.98.
- Alphabet fell 0.95% to 97.43.
Amazonia it fell after confirming it would continue to downsize into next year because the economy is “tougher than before.”
The shoe retailer Foot Locker rose 8.50% to 35.88 after the reported figure was better than expected. The company also revised its guidance upwards for the current year.
The clothing brand GAP rose 7.38% to 13.67 after the reported quarterly figure. Analysts had expected the company to lose money, but the company surprised with a positive result.
The used car manufacturer caravan fallen off It fell 3.01% to 8.06% after the company announced it would be shedding 1,500 employees, or 8% of the workforce.
Oil has gone down
The broader market was dragged down by a steadily falling oil price. Brent crude fell 2.47% to 87.76, while WTI oil it fell 1.76% to 80.20.
– The price of oil fell on concerns about falling demand in China following an increase in infection cases in the country. This makes it unlikely that corona restrictions will be relaxed in the foreseeable future, writes Commerzbank in a note to its clients.
