US stocks rose Friday afternoon, building on a stellar November, as investors began to digest remarks from Federal Reserve Chair Jerome Powell who warned that it would “premature’ to conclude that Fed rate hikes are over or “speculate” when cuts could begin.
The S&P 500 (^GSPC) increased about 0.5%, while the Dow Jones Industrial Average (^DJI) rose roughly 0.7% or more than 200 points. The tech-heavy Nasdaq Composite (^IXIC) advanced 0.4%.
Stocks soared in November to post their best monthly performance since 2022 as conviction that the Fed was done with rate hikes morphed into growing hopes for rate cuts before the summer.
“It’s one of the best months we’ve seen in the last decade,” eToro US investment analyst Callie Cox told Yahoo Finance Live. “And I think it shows us how a lot of investors were caught off guard by the Fed’s flexible stance after the Nov. 1 meeting.”
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Given that, the focus will be firmly on what Powell has to say on policy at his two appearances Friday, especially after October data showed inflation cooled to its lowest levels since 2021. Hopes are he may give a clear steer on the central bank’s thinking after a stream of Fed speakers took differing stances.
Meanwhile, oil prices steadied, having lost ground after OPEC+’s additional output curbs failed to convince skeptical investors. WTI crude futures (CL=F) were trading around $76 a barrel, while Brent (BZ=F) futures were below $83.
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Stocks trending in afternoon trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page during afternoon trading on Friday:
Paramount (PARA): The entertainment company rose more than 9% Friday afternoon following a Wall Street Journal report that Paramount and Apple (AAPL) are in talks to potentially bundling their streaming platforms. The proposed Apple TV+/Paramount+ combo service would likely be more affordable than having the two services separately, and would give customers access to exclusive content across both catalogs.
Pfizer (PFE): Shares of the pharmaceutical giant fell by 6% on Friday morning after the company said it would not move forward with a study of its two-dose obesity treatment, following a high level of side effects in patients involved in the trials.
Coinbase (COIN): Shares of the crypto platform rose more than 6%, building on impressive returns for the year following a major settlement between US authorities and Binance, that analysts say has resolved a degree of uncertainty that had hung over the industry. Coinbase is trading at roughly 4 times the price at which it began the year.
Bitcoin (BTC-USD): The dominant cryptocurrency rang in December with optimism as the world’s largest cryptocurrency extended a rally that is approaching a 19-month high as investors bank on approval of a spot exchange-traded fund that would invite more capital investments to the industry. Bitcoin rose nearly 2% to surpass $38,000.
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Stocks tick upward even after Powell chills rate cut chatter
Federal Reserve Chair Jerome Powell warned that it would “premature’ to conclude that rate hikes are over or “speculate” when cuts could begin.
In prepared remarks at Spelman College in Atlanta on Friday, Powell chilled hopes that the central bank would soon declare victory in its fight to curb inflation. But investors appeared to take the cautious comments in stride, as the major indexes ticked higher in the final hour of morning trading.
Powell’s comments follow a fresh read on the Fed’s favored inflation measure — the core Personal Consumption Expenditures index — that showed inflation is continuing to slowly come down, Yahoo Finance’s Jennifer Schonberger reports. Core PCE clocked in at 3.5% for the month of October, down from 3.7% in September, continuing a downward trend from 4.3% back in June.
The full effects of the Fed’s aggressive rate hikes have likely not yet been felt, he said. That suggests the Fed will hold interest rates steady at its next meeting in in less than two weeks.
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Stocks trade higher in afternoon session
Wall Street gathered momentum on Friday afternoon following remarks from Fed Chair Jerome Powell in which he chilled hopes of an imminent rate cut and an end to the tightening campaign.
The S&P 500 (^GSPC) increased about 0.5%, while the Dow Jones Industrial Average (^DJI) rose roughly 0.7% or more than 200 points. The tech-heavy Nasdaq Composite (^IXIC) advanced 0.4%.
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Tesla stock falls after Cybertruck debut
Tesla’s (TSLA) much-anticipated Cybertruck has arrived as the company delivered its first batch of the vehicle to buyers. On first blush the market did not seem impressed, shares of the all-electric automaker fell 2% in morning trading Friday.
The slide also comes after CEO Elon Musk faces the fallout from his interview at the New York Times (NYT) DealBook conference earlier this week, in which he cursed advertisers fleeing his social media company X.
Drivers interested in the Cybertruck base model will have to hand over $60,990, more than 50% costlier than the company estimated years ago when they announced the new model. “That just isn’t a large segment of the population that can afford that especially where interest rates are,” said Jessica Caldwell, head of insights at auto research firm Edmunds.
The truck’s launch caps off a topsy-turvy year for Tesla, Yahoo Finance’s Josh Schafer reports, which has seen its stock price soar on the possibilities of its artificial intelligence goals while also coming under pressure amid multiple price cuts and weakening margins.
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Stocks trending in morning trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Friday:
Pfizer (PFE): Shares of the pharmaceutical giant fell by 6% on Friday morning after the company said it would not move forward with a study of its two-dose obesity treatment, following a high level of side effects in patients involved in the trials.
Bitcoin (BTC-USD): The dominant cryptocurrency rang in December with optimism as the world’s largest cryptocurrency extended a rally that is approaching a 19-month high as investors bank on approval of a spot exchange-traded fund that would invite more capital investments to the industry. Bitcoin rose nearly 2% to surpass $38,000.
Ulta (ULTA): The beauty supply retailer continued its climb Friday morning, rising more than 12%, after the company reported third quarter results that were slightly better than Wall Street expected. The beauty retailer reported adjusted earnings of $5.07 per share, compared to expected $5.00.
Marvell (MRVL): Shares dropped by 6% after the semiconductor company offered fourth quarter guidance that fell short of the expectations for the top and bottom lines.
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Stocks open down slightly ahead of Powell’s remarks
Wall Street rang in the final month of the day with some pessimism as investors braced for Fed Chair Jerome Powell to deliver remarks later this morning.
The S&P 500 (^GSPC) edged lower by about 0.2%, while the Dow Jones Industrial Average (^DJI) was virtually unchanged. The tech-heavy Nasdaq Composite (^IXIC) sank 0.3%.
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