US benchmark equity indexes showed declines Friday afternoon as investors anticipated the upcoming Federal Reserve monetary policy decision next week. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite each dropped 0.2%, landing at intraday figures of 43,816.1, 6,040.3, and 19,863.3, respectively.
Among various sectors, communication services suffered the largest decrease, while utilities emerged as the leaders in gains. Recent official US data revealed that monthly consumer inflation in November matched market expectations, while producer prices experienced a higher-than-anticipated increase. The Federal Open Market Committee is now assigning a 97% chance for a 25 basis point reduction in interest rates during next week's meeting, a rise from 86% just a week prior, as highlighted by the CME FedWatch tool. "Following Wednesday's consumer price index increase, yesterday's unexpectedly high producer price index reading underscores a diminishing trend in disinflation and highlights the importance of a cautious monetary policy approach for 2025," stated Stifel in a recent note to clients. Furthermore, the US 10-year yield saw an uptick of 6.7 basis points, reaching 4.39%, while the two-year rate climbed 5.3 basis points to 4.24% intraday. In corporate news, Under Armour's class A shares decreased by 9%.
While the sportswear company’s turnaround efforts appear promising, Truist Securities noted that clarity regarding its future growth remains limited after their investor meeting on Thursday. Shares of Super Micro Computer, known for AI servers, dropped by 5.6%, marking the steepest decline on both the S&P 500 and the Nasdaq. In contrast, Broadcom experienced a significant rise, with its shares surging nearly 21% following a release of fiscal fourth-quarter earnings that exceeded expectations, although revenue figures did not meet Wall Street's forecasts.
BofA Securities projected strong growth for Broadcom in the upcoming three years, propelled by an expanding AI sector and the acquisition of two significant new clients. Additionally, Progressive reported a net income of $1.71 per share for November, up from $1.15 the previous year. Its shares rose by 4.3%, marking it as the second-best performer on the S&P 500. In commodities, West Texas Intermediate crude oil experienced a price increase of 1.8%, reaching $71.27 per barrel.
Gold prices fell by 1.3% to $2,675.50 per troy ounce, while silver dropped 1.8% to $31.04 per ounce..