S&P 500, Nasdaq 100 Aim For 8th Week Of Gains As Fed's Inflation Gauge Cools: What's Driving Markets Friday?

The S&P 500 and Nasdaq 100 indices are on the verge of achieving an impressive eight consecutive weeks of gains following a more significant decline than expected in the Federal Reserve’s favored inflation gauge in November, the Personal Consumption Expenditures (PCE) price index.

For the S&P 500, this marks its longest run of positive weekly closes since September 2017, while for the Nasdaq 100, it’s the longest since January 2019.

Additionally, economic data unveiled on Friday showed consumer spending to be softer than anticipated, along with a positive revision to the Michigan Consumer Sentiment Index and durable goods orders that surpassed expectations.

The iShares Russell 2000 ETF IWM, tracking small-cap stocks, continues to outshine its large-cap counterparts.

Notably, both the U.S. Dollar Index, tracked by the Invesco DB USD Index Bullish Fund ETF UUP, and Treasury yields remained steady throughout the day.

Gold, represented by the SPDR Gold Trust GLD, experienced a modest 0.4% uptick, reaching $2,050 per ounce, while Bitcoin BTC/USD recorded a slight 0.5% decline. WTI oil maintained its position at $74 per barrel.

Chart of The Day: Fed’s Preferred Gauge of Inflation Further Cools In November

Friday’s Performance In US Major Indices, ETFs

The SPDR S&P 500 ETF Trust SPY was 0.3% higher to $474.28, the SPDR Dow Jones Industrial Average ETF DIA was 0.1% higher to $374.41 and the Invesco QQQ Trust QQQ inched up 0.3% to $409.02, according to Benzinga Pro data.

Sector-wise, staples and utilities outperformed, with both the Consumer Staples Select Sector SPDR Fund XLP and the Utilities Select Sector SPDR Fund XLU up 0.9%.

The Consumer Discretionary Select Sector SPDR Fund XLY was the only sector in the red, down 0.3%.

Among industries, the iShares Biotechnology ETF IBB rose 3.6%, followed by the VanEck Gold Miners ETF GDX.

Friday’s Stock Movers

• ANSYS, Inc. ANSS surged by 12% following a Reuters report that the company is considering various options, including a possible sale. This decision comes in response to takeover interest from potential buyers, as disclosed by sources familiar with the matter.
• NIKE Inc. NKE fell 10%, after the company missed revenue estimates last quarter and announced weaker-than-expected guidance due to declining sales from Greater China.
• Brystol Myers Squib BMY rose 2.2% after the company agreed to buy Karuna Therapeutics KRTX for $14 billion in cash, gaining a promising experimental schizophrenia drug. KRTX rose 47%.
• Moderna Inc. MRNA surged 5%, on track for its sixth straight week of gains.

Read now: Is Lower Inflation A Green Light For 2024 Interest Rate Cuts? Markets Are Ending The Year ‘Surprised,’ CIO Says

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