The Dow Jones and S&P 500 fell 0.3% each, while the Nasdaq Composite fell 0.6% as all big tech barring Netflix, ended lower on Wednesday.
Dell and HP shares were the top drags, falling 11% each after disappointing results and outlook.
Treasury 10-year yields declined six basis points to 4.25%. The Bloomberg Dollar Spot Index slipped 0.7%. Bitcoin rallied.
For the month, the Dow Jones is up over 7% and is on course for its best month of 2024, while the S&P 500 and the Nasdaq Composite are up over 5% each.
US markets will remain shut today and will close early on Friday and as a result, trading volumes have remained thin through the week.
“It’s beginning to look a lot like ‘tech mess’,” said Jonathan Krinsky at BTIG. “The relative breakdown in tech is a concern heading into 2025, although the good news so far is rotation into other parts of the market keeps the broadening trade alive.”
Data showed the Fed’s preferred measure of underlying inflation picked up. While in-line with estimates, the core personal consumption expenditures climbed 2.8% from October last year. Separate figures showed the economy expanded at a solid pace.
The data support recent comments by many Fed officials that there’s no rush to cut rates as long as the labor market remains healthy and the US continues to power ahead. To Bret Kenwell at eToro, overall inflation has been moving in the desired direction, but a lack of further follow-through could force investors to reassess bets on future rate cuts.
“The last mile towards price stability has been stymied by still ‘sticky’ inflation and bumps along road,” said Quincy Krosby at LPL Financial.
JPMorgan Chase & Co.’s equity strategy team, led for years by Marko Kolanovic until his departure earlier in 2024, has turned positive on US stocks.
Dubravko Lakos-Bujas, who took over market research for the firm this summer, released a year-end 2025 target of 6,500, which eclipses the average projection of about 6,300 among strategists tracked by Bloomberg.
“Heightened geopolitical uncertainty and the evolving policy agenda are introducing unusual complexity to the outlook, but opportunities are likely to outweigh risks,” he wrote.
(With Inputs From Agencies.)
