Nasdaq reached a record maximum closing on Friday (12) at a mixed negotiation session, driven by Microsoft while investors await the Federal Reserve policy meeting next week, when a cut in interest rates are widely expected to contain the deceleration in the job market.
Driven by Tesla and other technology -related actions, Nasdaq contributed to the discharge of the previous session, in which all three rates reached historical maximums.
Investors are focused on the Fed meeting on Tuesday (16) and Wednesday (17). Operators expect the Central Bank to cut interest rates at 25 base points after recent data show persistent weakness in hiring and relief from concerns about inflation.
“As we had such a good jump in the stock market yesterday, investors are basically recovering their breath,” said Sam Stovall, chief investment strategist at CFRA Research. “There will be no data between now and Wednesday. It’s a kind of attitude of waiting to see.”
Microsoft earned 1.8% after the technology giant avoided a possible EU heavy antitrust fine by offering customers reduced prices for Office products, excluding Teams.
Tesla jumped 7.4% after board chairman Robyn Denholm dismissed concerns that CEO Elon Musk’s political activity has impaired sales of electric vehicle manufacturer and said the billionaire was “prominent” at the company after several months in the White House.
With the rise on Friday (12), Tesla’s shares remain down 2% by 2025.
Falls in the actions of Goldman Sachs GS.N and the paint manufacturer Sherwin-Williams maintained the Dow Jones Industrial Averag in negative territory. The S&P 500 retreated slightly.
The University of Michigan research showed that US consumer feeling fell for the second consecutive month in September, as consumers perceived increasing risks to business conditions, labor market and inflation.
The S&P 500 fell 0.05%, ending the session at 6,584.29 points.
Nasdaq earned 0.45%to 22,141.10 points, while Dow Jones Industrial Averag fell 0.59%to 45,834.22 points.
Seven of the 11 S&P 500 sectoral indices fell, led by the .SPXHC Health Sector, with a drop of 1.13%, followed by a loss of 0.97% in materials .SPLRCM.
After signs of worsening in the job market, the future interest rates reflect expectations of cuts totaling 75 base points by the end of the year.
In the week, the S&P 500 rose 1.6%, Dow rose almost 1%and Nasdaq advanced 2%, aided by the resumption of artificial intelligence trade after the strong forecast of the Oracle cloud computer giant on Tuesday (9).
Warner Bros. Discovery jumped 17%, extending the increase on Wednesday (10), when a source said Paramount Skydance was preparing an offer for the difficulty media company.
Vaccine manufacturers’ actions fell after a report states that US health officials plan to link coronavirus vaccines to the death of 25 children. The modern fell 7.4%, while Pfizer and Novavax lost more than 3% each.
