Traders are at work on the New York Stock Exchange on December 17, 2024.
New York Stock Exchange
the Dow Jones Industrial Average The index rebounded on Friday, concluding a difficult week that saw the index drop 1,100 points in a single day and complete its longest losing streak since the 1970s. Some cooler-than-expected inflation data helped fuel Friday's rebound.
The 30-stock Dow Jones Index gained 746 points, or 1.7%. the Standard & Poor's 500 It rose 1.7%, while it rose Nasdaq Composite It rose by 1.7%.
The November reading of the Personal Consumption Expenditures Price Index — the Fed's preferred measure of inflation — rose 2.4% year over year. That was slightly lower than economists had expected and helped defuse some of the downtrend that emerged earlier this week when the Fed said it would hold back future interest rate cuts in part because of stubborn inflation.
Stocks that took losses earlier in the session such as Nvidia and Tesla led Friday's comeback. Tesla shares recently rose by about 1%. Nvidia shares rose 2%.
Chicago Fed President Austan Goolsbee told CNBC's Steve Liesman that he was encouraged by Friday's inflation numbers and that interest rates could fall next year despite the central bank's dovish stance.
“We're still on track to get to 2%, and at least for this new month, you don't want to make too much out of any one month, but I hope this indicates that the two months of holding steady have been successful,” Goolsby said. “It's more of a bump than a change.” On the track.”
It's a positive end to a turbulent week. During the trading session on Thursday, Dao It gained 15 points and ended a 10-day losing streak — the longest since 1974. The small gain came a day after the Dow fell 1,100 points on Wednesday. The Fed's indication of just two cuts next year, instead of the four it originally expected, was the catalyst for the decline.
“Today people have calmed down,” said Tom Fitzpatrick, managing director at RJ O'Brien & Co. “(We are) unlikely to get a bearish catalyst now before Christmas and New Year, so the moves in the last few days could ease a bit.”
Still weighing on sentiment slightly on Friday was the failure of a Republican measure passed by the House on Thursday night to fund the government for three months and avert a government shutdown. Without an agreement, the partial lockdown is scheduled to begin on Friday night.
The Dow Jones index fell about 2.7% during the week, heading for its worst weekly performance since September. The S&P 500 and Nasdaq fell about 2% during the week.
CNBC's Sarah Main and Christina Wilkie contributed to this report.
