Stocks closed higher on Friday, driven by a soft inflation report that provided a bullish backdrop for investors. The Dow Jones Industrial Average added nearly 500 points, or 1.2%, while the S&P 500 climbed 1.1% and the Nasdaq composite gained 1%. The small-cap benchmark Russell 2000 rebounded 0.9%.
Several stocks made significant gains, including Lemonade, Palantir, and Rocket Lab, which rose about 7-9%. Treasury yields surged this week but fell five basis points to 4.51% after the inflation report.
Efforts to avert a partial government shutdown continued, with lawmakers working on “Plan C” that involves breaking up short-term funding bills into three parts. The plan also includes raising the deficit limit and lowering spending.
Notable stocks included Nvidia, which rose more than 3%, and Tesla, which reversed over 1% higher after a strong earnings report from Warren Buffett’s Berkshire Hathaway holding Occidental Petroleum. However, some stocks fell, including Trump Media & Technology, which plummeted after reports that President-elect Donald Trump had moved shares to a revocable trust.
The market’s gains were partially driven by the inflation report, which showed a rise in the Personal Consumption and Expenditure index of 0.1% month-over-month and 2.4% year-over-year. Core inflation also rose 0.1% on a monthly basis and 2.8% annually.
As investors look ahead to 2024, some experts are optimistic about the prospects for artificial intelligence chipmakers, with Morgan Stanley calling Nvidia a top pick for 2025. The firm also raised its price targets on several other AI chip stocks.
Source: https://www.investors.com/market-trend/stock-market-today/dow-jones-sp500-nasdaq-nvidia-stock-nvda-trump-stock