Caution clouded U.S. stocks before the opening bell on Friday as traders eagerly anticipated a crucial inflation metric, a key factor influencing the Federal Reserve’s policy decisions.
A potential easing of inflationary pressures, if confirmed by the inflation component of the personal income and spending report for November, may trigger a stock rally, setting the stage for the unofficial start of the Santa Claus rally next week.
Trading volume could remain light in the thin pre-holiday market, with the stock market closed on Monday for Christmas.
Nike, Inc.’s (NYSE:NKE) disappointing guidance has added to trader nervousness about the outlook for earnings growth in the upcoming year.
Cues From Thursday's Trading:
Stocks rebounded significantly after a session of profit-taking had pushed the market lower in the previous session. The rebound was supported by positive earnings reports from memory chipmaker Micron Technology, Inc. (NASDAQ:MU), along with encouraging GDP and consumer confidence data affirming the strength of the economy.
Major averages opened higher, maintaining positions above the unchanged line throughout the session and closing near session highs. Technology stocks displayed notable strength, with communication services, IT, and IT services stocks gaining ground. Additionally, consumer discretionary, healthcare, industrial, and material stocks also experienced positive movements during the session.
US Index Performance On Thursday
Index Performance (+/-) Value Nasdaq Composite +1.26% 14,963.87 S&P 500 Index +1.03% 4,746.75 Dow Industrials +0.87% 37,404.35 Russell 2000 +1.73% 2,017.06
Analyst Color:
The catalyst for ...