Albany [New York], December 14: U.S. stocks were little changed on Friday, as investors prepare for the Fed's interest rate decision next week.
The Dow Jones Industrial Average fell 86.06 points, or 0.20 percent, to 43,828.06, posting its longest run of losses since 2020. The S&P 500 sank 0.16 points, or 0.00 percent, to 6,051.09. The Nasdaq Composite Index increased 23.88 points, or 0.12 percent, to 19,926.72.
Seven of the 11 primary S&P 500 sectors ended in red, with communication services and materials leading the laggards by losing 1.12 percent and 0.79 percent, respectively. Meanwhile, technology and consumer discretionary led the gainers by going up 0.54 percent and 0.42 percent, respectively.
"We're kind of stuck in this trading range," said Jay Hatfield, CEO at Infrastructure Capital Advisors. "The Nasdaq will outperform, small caps will underperform, Dow will underperform till we get some catalyst."
Tech stocks pushed higher on Friday, buoyed by Broadcom's stellar performance. The chipmaker's shares soared 24.43 percent, propelling its market capitalization past the 1-trillion-U.S.-dollar milestone for the first time. The rally followed Broadcom's better-than-expected earnings and a bullish outlook for its AI-driven business, underscoring the sector's growth potential in artificial intelligence (AI) technologies.
However, broader market sentiment was weighed down by rising interest rates, with the 10-year U.S. Treasury yield climbing 25 basis points this week. The steady increase in yields reflects investor caution ahead of the Federal Open Market Committee (FOMC) meeting next week, where policymakers are expected to cut interest rates by 25 basis points.
"It might be a 'hawkish cut' with the FOMC's Statement and Summary of Economic Projections signaling a pause in rate cutting early next year," market veteran Ed Yardeni said in a note on Thursday. Bank of America also said in a Friday note that next week's rate cut is "fully priced" into the market and that due to the Fed's ongoing "data dependence," there are "risks for hawkish guidance, given signs of inflation stickiness."
Source: Xinhua News Agency
