In a tumultuous conclusion to a challenging week for investors, stocks closed with a mixed performance on Friday. The S&P 500 (^GSPC) officially entered correction territory, marking a significant downturn in the market. The index closed down approximately 0.5%, despite earlier gains in the session. Simultaneously, the Dow Jones Industrial Average (^DJI) experienced a sharp decline of about 1.2%, equivalent to over 350 points. In contrast, the Nasdaq Composite (^IXIC) managed to hold onto gains, concluding the day up approximately 0.4%.
Earnings reports from industry leaders Amazon (AMZN) and Intel (INTC) provided a respite for Big Tech, quelling concerns and contributing to the Nasdaq Composite’s resilience. The index had previously entered correction territory earlier in the week due to a sell-off catalyzed by mixed earnings from major tech corporations.
On Friday, the Federal Reserve unveiled its preferred inflation metric, demonstrating a notable surge in prices over the preceding month—marking the most substantial increase since May. Meanwhile, annual price escalations continued to moderate in September, emphasizing the likelihood of the central bank maintaining interest rates at elevated levels for an extended period. The Core Personal Consumption Expenditures (PCE) Index, excluding the volatile food and energy sectors, divulged a 0.3% rise in prices for September and a 3.7% surge from the previous year. Data released by the Commerce Department on Thursday revealed that this uptick in core PCE was primarily propelled by categories such as automobiles, prescription drugs, and travel. Considering all categories, PCE exhibited a 3.4% rise from the previous year and a 0.4% increase month-over-month. September’s annual increase in “core” PCE marked the smallest growth since May 2021 and signaled the third consecutive month of prices rising at a decelerated annual pace.
The mixed performance of the stock market on Friday capped off a week characterized by market volatility. The S&P 500 officially entered correction territory, experiencing a nearly 10% decline from its peak in September. Conversely, the Nasdaq Composite, which is heavily weighted toward technology companies, descended further into a correction, exhibiting a 13% decrease from its record high established in late August. Although dominant technology firms contributed to market stability with robust earnings performances, apprehension regarding future performance and the potential ramifications of a sustained sell-off led to a divergent market close on Friday.
In summary, the stock market concluded the week with a mixed performance, highlighted by the S&P 500’s official entry into correction territory. Investors remain vigilant as they navigate through an evolving financial landscape.
Source: Yahoo Finance
