U.S. benchmark equity indexes fell on Friday as traders processed remarks from Federal Reserve figures alongside the latest economic developments. The Nasdaq Composite experienced a significant downturn of 2.2%, closing at 18,680.1, while the S&P 500 slipped by 1.3% to settle at 5,870.6. Similarly, the Dow Jones Industrial Average saw a loss of 0.7%, ending the day at 43,445.
Among the various sectors, technology faced the most considerable pressure, plummeting by 2.5%, whereas utilities emerged as the highest performers. Over the past week, the Nasdaq has experienced a total loss of 3.2%, the S&P 500 has declined by 2.1%, and the Dow has seen a decrease of 1.2%. Austan Goolsbee, President of the Chicago Fed, commented that policymakers are progressing toward their economic goals and that the continuation of easing monetary policy is feasible.
Susan Collins, President of the Boston Fed, noted that a reduction in interest rates next month is still a possibility: "certainly on the table, but not a done deal," highlighting the ongoing deliberations surrounding monetary policy. Fed Chair Jerome Powell indicated that the U.S. economy is not currently signaling a necessity to accelerate rate cuts.
Consequently, the likelihood of a 25 basis point reduction by the Federal Open Market Committee next month decreased to 58% on Friday from 72% the previous day, while the chances for rates to remain steady rose to 42%. In the bond market, the U.S. 10-year yield saw an uptick of 1.9 basis points, reaching 4.44%, contrasted by a 1.6 basis points rise in the two-year rate, which now stands at 4.31%. Regarding economic indicators, U.S.
retail sales saw a higher-than-expected increase in October, bolstered by a surge in automobile purchases, with September's figures also revised upwards, according to government data. However, U.S. industrial production faced a decline for the second consecutive month in October due to a resolved strike at Boeing ($BA) and the effects of two hurricanes. Despite a forecasted rebound in industrial production, Oxford Economics indicated that the recovery in motor vehicle and parts output may be slow to materialize. In an encouraging development, manufacturing activity in New York revitalized in November, posting its highest level in nearly three years with positive swings in orders and shipments, according to the New York Fed. On the commodities front, West Texas Intermediate crude oil dropped 2.5% to $67 per barrel on Friday, heading towards a weekly decline amid concerns regarding diminishing demand in China, as noted by D.A.
Davidson in their client communications. In corporate news, Applied Materials ($AMAT) shares plummeted by 9.2%, marking the worst performance on both the S&P 500 and Nasdaq, after the semiconductor equipment giant provided a gloomy quarterly revenue forecast. Conversely, FuelCell Energy ($FCEL) announced plans to reduce its workforce by 17% as part of a global restructuring strategy aimed at cost reduction due to slower-than-anticipated clean energy investments, resulting in a 12% drop in its shares. Palantir Technologies ($PLTR) saw its shares increase by 11%, becoming the top performer on the S&P 500 after announcing a shift of its Class A common shares listing to the Nasdaq Global Select Market from the New York Stock Exchange, effective November 26. Walt Disney ($DIS) emerged as the top gainer on the Dow and among the leading stocks on the S&P 500, rising 5.5% following a strong fiscal fourth-quarter performance. Gold prices slipped by 0.2%, landing at $2,566.60 per troy ounce, while silver faced a minor decline of 0.8%, settling at $30.34 per ounce. The economic landscape continues to evolve, with markets closely monitoring developments in monetary policy and corporate performances..