Weekly Market Update

Stock Market Update

The US stock market experienced significant fluctuations over the past week, driven by various factors such as interest rate decisions and earnings reports from major corporations.
• On Monday, stocks fell as Wall Street awaited the Federal Reserve's final policy meeting of the year. However, a 25 basis point rate cut on Wednesday boosted the markets.
• The Dow Jones Industrial Average (^DJI) added 1% or around 500 points, while the S&P 500 (^GSPC) rose 0.7%, finishing just below a record close.
• The tech-heavy Nasdaq Composite (^IXIC) gained nearly 0.3%.
• Oracle (ORCL) earnings revived AI overspending worries, causing stocks to decline on Thursday. However, other corporations like Broadcom (AVGO), Costco (COST), and Lululemon (LULU) reported strong earnings.
• The week ended with a sharp decline in tech stocks, particularly the Nasdaq Composite (^IXIC), which fell 1.6%.

Key Takeaways

The Federal Reserve's decision to cut interest rates by a quarter percentage point for the third time this year has provided some relief to the markets. However, investors are now looking ahead to 2026 and whether there will be more easing.
• The central bank signaled a slower pace of easing ahead, projecting one more cut for 2026.
• Chair Jerome Powell expressed confidence about the trajectory of inflation and growth in the US economy during his press conference.
• Tech stocks have experienced significant fluctuations over the past week, driven by various factors such as AI overspending worries.

Looking Ahead

The upcoming earnings reports from major corporations are expected to provide further insight into market trends. Additionally, investors will be closely watching for signs of inflation and growth in the US economy.