On Friday Eastern Time, the three major US stock indexes closed with mixed gains and losses. The Dow Jones Industrial Average fell for the seventh consecutive trading day, setting a record for the longest consecutive decline since 2020. Investors expect the Federal Reserve to slow down its interest rate cuts next week.
Driven by the sharp rise of Broadcom, the Nasdaq 100 index climbed for the fourth consecutive week, while other major stock indices performed poorly. Except for the technology sector, there are fewer and fewer stocks supporting the rise of the stock market, and the market breadth is rapidly deteriorating.
Infrastructure CEO Jay Hatfield said, "We're a bit stuck in this trading range, with the tech dominated Nasdaq outperforming the market average, and small cap stocks and the Dow Jones performing poorly until some new catalysts emerge
SentimentTrader's strategists describe this phenomenon as an "early crack" in the "long-term, strong" bull market of the US stock market. They wrote in their report to clients, 'Investors have started to hesitate.' Some Wall Street insiders also believe that there may still be greater room for the US stock market to rise.
At present, the market generally expects the Federal Reserve to cut interest rates by 25 basis points next week, which may drive the US stock market to continue to rise.
BMO analyst Ian Lyngen said, "The market is preparing for the Federal Reserve's interest rate decision, and this action is likely to be characterized as a hawkish rate cut
After releasing a series of mixed data this week, swap traders have reduced their bets on the Federal Reserve's loose path. They currently expect to cut interest rates about three times in the next year. A week ago, they thought there would be four interest rate cuts.
Market dynamics
As of the close, the Dow Jones Industrial Average fell 86.06 points, or 0.20%, to 43828.06 points; The Nasdaq rose 23.88 points, or 0.12%, to 19926.72 points; The S&P 500 index fell 0.16 points to 6051.09 points.
Most of the 11 sectors in the S&P 500 index fell, with the essential consumer sector falling 0.2%, the communication services sector falling 1.12%, the finance sector falling 0.28%, the healthcare sector remaining unchanged, and the information technology sector rising 0.54%.
A few ETFs in the US stock market closed higher, with the semiconductor industry ETF up 2.51%, the global technology stock index ETF up 0.87%, the technology industry ETF up 0.43%, the optional consumer ETF up 0.4%, and the banking ETF, regional banking ETF, energy ETF, internet stock index ETF, biotechnology index ETF, and global aviation ETF closing down 0.37% -0.98%.
Performance of popular stocks
Large tech stocks fluctuated, with Nvidia falling 2.25%, Meta falling 1.66%, Google A falling 1.11%, Amazon falling 0.66%, Microsoft falling 0.51%, Apple rising 0.07%, and Tesla rising 4.34%.
Broadcom rose over 24%, with its market value breaking through the $1 trillion mark for the first time. Broadcom's AI revenue has grown by 220% to $12.2 billion this year, and it is expected that AI product revenue will increase by 65% year-on-year in the first quarter of fiscal year 2025.
Furniture and home goods company RH's stock price surged 17% after raising its revenue growth forecast for this year. Maiweier Technology rose nearly 11%, with its stock price reaching a historic high.
The Nasdaq China Golden Dragon Index closed down 1.13% and rose 2.07% this week. Most popular Chinese concept stocks fell, with Xiaopeng Motors dropping over 3%, Ideal Auto, Pinduoduo, Bilibili, and JD.com falling over 2%, and Alibaba and NIO falling over 1%. In terms of gains, Tiger Securities rose over 9%, while Futu Holdings rose over 1%.
Company News
The latest research confirms that Novo Nordisk Ozempic is associated with the risk of rare vision loss
A recent study has confirmed that Ozempic, the star drug of Danish pharmaceutical giant Novo Nordisk, is associated with an increased risk of a rare vision loss disease. In July of this year, the Massachusetts Eye and Ear Hospital affiliated with Harvard Medical School released a study suggesting that Novo Nordisk Ozempic and Wegovy may be associated with an increased risk of developing rare visual impairment. The research results on medical records show that compared to those who use other weight loss drugs, patients who use Novo Nordisk weight loss drugs to lose weight are more than six times more likely to develop non arterial anterior ischemic optic neuropathy (NAION).
Coca Cola invests approximately $90 million to expand production in the Brazilian Amazon region
Coca Cola Brazil announced in a statement that it has invested 550 million Brazilian reals ($90 million) to expand a concentrated beverage plant in the Amazon state of Brazil. Coca Cola announced that the new factory held its inauguration ceremony on Friday, attended by Brazilian Vice President Gerardo Alckmin and other officials.
Trump Team Seeks to Abolish Accident Reporting Requirements for Autonomous Vehicles
According to reports, the Trump transition team proposed in its 100 day plan for automotive policy to abolish the accident reporting requirement, which has led to "excessive data collection" and placed an additional burden on automakers, especially in the rapidly developing autonomous driving industry. In addition, the transition team also suggests "relaxing" the regulatory rules for autonomous vehicles and introducing basic regulations to support industry innovation. The above proposal has received support from Tesla and its CEO Musk, and if the report is cancelled, Tesla will be the big winner. However, this has raised concerns about vehicle safety regulatory capabilities and consumer protection. It is currently unclear whether the new Trump administration will adopt the suggestion to cancel the reporting requirements.
The email shows that Musk has long wanted to turn OpenAI into a for-profit company
On Friday local time, facing a series of lawsuits and attacks launched by Musk, OpenAI finally launched a counterattack, releasing multiple emails and chat records between Musk and OpenAI's digital founders, refuting all of Musk's accusations through a series of detailed evidence. In a blog post titled 'Elon Musk wants a for-profit OpenAI', the startup claims that in 2017, Musk not only wanted OpenAI to transform into a for-profit company, but actually created a for-profit corporate structure. OpenAI pointed out that when Musk did not acquire majority ownership and control of OpenAI, he left the company and claimed that OpenAI would go down the road to failure. After OpenAI became the global leader in AI, Musk also requested the court to prevent OpenAI from transforming into a fully for-profit enterprise.