The Dow Jones Industrial Average reached an all-time high on Friday, closing at 42,313, as financial markets assessed the most recent economic data, notably the Federal Reserve's preferred inflation metrics. This recent uptick saw a 0.3% gain for the Dow, whereas the Nasdaq Composite faced a decline of 0.4%, finishing at 18,119.6, and the S&P 500 dipped slightly by 0.1% to 5,738.2.
In terms of sector performance, technology stocks led the decline for the day, contrasted by strong gains in the energy sector. Looking back over the past week, the Nasdaq showed resilience with nearly a 1% rise, while both the Dow and S&P 500 made modest climbs of 0.6% each. On the economic front, U.S.
consumer spending witnessed a steeper than expected slowdown in August. Nonetheless, the Federal Reserve's preferred inflation measurement, which eliminates the effects of volatile food and energy prices, displayed a year-over-year increase of 2.7% last month, slightly up from July's 2.6%. Month-to-month comparisons indicated a decrease in the core measurement to 0.1% from the previous 0.2%.
TD Economics acknowledged, "The Fed's preferred core measure continues to head in the right direction, even though base effects are boosting the yearly pace. Given that inflation remains contained, the Fed will be paying even keener attention to labor market developments, with September payrolls data scheduled for release next Friday, as they calibrate further policy actions." In terms of consumer sentiment, it has improved in September, although expectations for inflation over the coming year have slightly decreased, according to final results from the University of Michigan's Surveys of Consumers. In yield news, the U.S.
two-year yield decreased by 5.6 basis points to 3.57% on Friday, while the 10-year yield saw a drop of 3.3 basis points, settling at 3.76%. In corporate news, HP Inc. saw a significant decline of 3.9%, making it one of the worst performers on the S&P 500 after BofA Securities downgraded its stock to neutral from buy.
Conversely, Wynn Resorts emerged as the top gainer on the S&P 500, with shares rising 7.2% following an upgrade from Morgan Stanley, changing its rating to overweight and adjusting the price target to $104 from $97. Tesla, the prominent electric vehicle manufacturer, is projected to report Q3 vehicle deliveries that surpass analysts' expectations, largely benefitting from robust demand in its critical China market and stabilization in pricing strategies, as noted by Wedbush Securities.
Tesla shares rose by 2.5% at closing. West Texas Intermediate crude oil traded up by 1.4%, reaching $68.6 a barrel. In precious metals, gold prices decreased by 0.8%, currently at $2,674.80 per troy ounce, while silver dropped 1.4% to $31.91 per ounce..