The Dow and S&P 500 ended the week lower, while the Nasdaq rose on strong tech stock performance. Broadcom’s valuation reached $1 trillion for the first time.
Market Weekly Performance
On Friday, U.S. stocks remained steady despite the superstitions linked to Friday the 13th. Investors awaited the Federal Reserve’s policy decision on Wednesday.
The S&P 500 fell 0.16 points to 6,051.09, breaking its three-week winning streak with a 0.6% weekly decline.
The Dow Jones Industrial Average dropped 86 points, or 0.2%, to 43,828.06. It posted a seventh consecutive daily loss, its longest losing streak since 2020. The Dow declined 1.8% for the week, its largest weekly drop since October.
The Nasdaq Composite rose 23.88 points, or 0.12%, to 19,926.72. The index gained 0.3% for the week, even after retreating from a record high of 20,061.65 earlier.
Inflation Concerns and Tech Stock Surge
The Federal Reserve’s final policy meeting of the year ends on Wednesday. Markets expect a 97% chance of a 0.25% rate cut, bringing the federal funds rate to 4.25% to 4.5%. However, future rate moves remain uncertain as inflation persists.
Recent data showed inflation rising. Consumer inflation increased 2.7% in November, its highest jump since July. Core inflation, which excludes food and energy, held steady at 3.3%, both above the Fed’s 2% target.
Wholesale prices also signaled inflation pressure. Annual wholesale prices rose 3%, and core wholesale prices, excluding food and energy, increased 3.5%. Both were the highest since February 2023.
Treasury yields climbed for a fifth consecutive session. The 10-year yield rose above 4.4%, while the 2-year yield hit 4.247% on Friday, reflecting inflation fears.
Tech giants like Apple, Nvidia, Microsoft, Amazon, Meta, Alphabet, Broadcom, and Tesla drove Nasdaq’s rise. Several tech companies reached record highs during the week.
Tesla’s stock hit its first record close in over three years. Since the election, Tesla shares have jumped 65%, driven by optimism around CEO Elon Musk’s relationship with President-elect Donald Trump.
Broadcom’s valuation surpassed $1 trillion after its stock soared more than 24% on Friday. This increase followed a strong first-quarter revenue forecast and optimism over AI-driven growth.
CEO Hock Tan predicted AI technology could generate $60 billion to $90 billion in revenue for Broadcom by 2027. This growth would significantly expand Broadcom’s market presence.