Markets digested recent gains ahead of the long holiday weekend on Friday. While a cooler-than-expected reading on the Fed's favorite inflation gauge boosted bets for additional interest rate cuts next year, some downbeat earnings news kept overall gains in check.
At the closing bell, the blue-chip Dow Jones Industrial Average slipped less than 1% to finish at 37,385, while the broader S&P 500 rose 0.2% to 4,754. The tech-heavy Nasdaq Composite added 0.2% to finish at 14,992.
All three benchmarks posted an eighth consecutive weekly gain. The S&P 500 hasn't enjoyed a weekly winning streak this long since late 2017. It's now down less than 1% on a price basis from its record close of January 3, 2022. For the Nasdaq and the Dow, these are the longest such weekly winning streaks since the beginning of 2019.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In economic news, the Federal Reserve's preferred gauge of inflation rose only slightly in November – and is close to the central bank's target by some measures. On a core basis, which excludes volatile food and energy costs, the PCE index rose 0.1% last month vs October, and 3.2% year-over-year, the Bureau of Economic Analysis said Friday.
Economists note that on a six-month basis, core PCE increased 1.9% – or below the Fed's long-term inflation target of 2%.
"Inflation continues to surprise to the downside, with the Fed's preferred metric of core PCE rising just 0.1% month-over-month in November," notes Sonu Varghese, global macro strategist at Carson Group. "This raises the odds for a rate cut in March."
In single-stock news, Nike (NKE) stock tumbled 12% after the athletic footwear and apparel maker lowered its full-year forecast, citing a cautious consumer. Nike was by far the worst performer among all 30 Dow Jones stocks Friday.
Elsewhere, shares in Occidental Petroleum (OXY) got a lift after a regulatory filing showed that Warren Buffett's Berkshire Hathaway portfolio raised its stake in the oil giant.
Santa Claus Rally starts Friday
The Santa Claus Rally – identified in the early 1970s by the creator of the Stock Trader's Almanac – doesn't mean what a lot of folks think it means.
The Santa Claus Rally is not when stocks have a great December. If you go all the way back to the 1920s, you'll see that December is typically the seasonally strongest month of the year for stocks, anyway. Rather, the Santa Claus Rally refers to the final five trading days of the year, plus the first two trading days of the new year.
"Historically, it turns out these seven days indeed have been quite jolly," writes Ryan Detrick, chief market strategist at Carson Group. "No seven-day combo is more likely to be higher (up 79.5% of the time), and only two combos have a better average return for the S&P 500 than the 1.32% average return during the official Santa Claus Rally period."
The Santa Claus Rally period kicked off Friday with a decent gain for the S&P 500. If history is any guide, market participants should expect a happy new year, too.
Related content
- Stocks With the Highest Dividend Yields in the S&P 500
- All 30 Dow Jones Stocks Ranked
- Best Blue Chip Dividend Stocks to Buy
-
Alphabet Stock Pops After Google Antitrust Ruling: What to KnowGOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
7 Mistakes to Avoid When You First Start InvestingInvesting brings the opportunity to build wealth, but there are plenty of mistakes that can be made. Here are seven common ones and how they can be avoided.
-
Stocks Slide to Start September: Stock Market TodaySeasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
Stocks End Strong Month on a Down Note: Stock Market TodayThere was likely a bit of profit-taking ahead of a historically weak September.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
-
S&P 500 Tops 6,500 Even as Nvidia Slips: Stock Market TodayThe world's most valuable company closed lower after earnings, but the S&P 500 managed to notch a new record high.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market TodayThe AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
President Trump Makes Markets Move Again: Stock Market TodayThe White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
-
Stocks Struggle to Start Nvidia Week: Stock Market TodayAnother important week for the stock market starts on a risk-off note.
