Stock market today: Dow rises, Nasdaq slips after key Fed inflation gauge shows faltering progress
Published On Nov 27, 2024, 11:30 AM
The US stock market showed mixed performance, with the Dow Jones Industrial Average slightly up while the Nasdaq Composite dropped. This divergence comes after data indicated stagnation in inflation progress, with the Federal Reserve's preferred inflation gauge revealing flat price increases. The core Personal Consumption Expenditures index aligned with expectations, suggesting the Fed's 2% inflation target remains a challenge. Meanwhile, although third-quarter GDP growth held steady at an annualized 2.8%, jobless claims decreased. Investor sentiment is cautious as they approach the holiday weekend and digest these economic indicators.
Stock Forecasts
QQQ
Negative
With inflation showing no significant progress towards the Federal Reserve's target, investor sentiment may lead to increased volatility in tech stocks. Companies like Dell and HP, which have already seen declines due to earnings misses, may continue to struggle amid these conditions. Consider the potential negative impact on tech-focused ETFs.
XLI
Negative
The outlook for industrials, particularly companies like General Motors and Ford, remains cautious amid rising tariff threats. This situation is likely to further negatively impact automaker stocks as investors reassess risks associated with regulatory and tariff uncertainties.
SPY
Neutral
Overall, the mixed performance of markets suggests a neutral outlook for broader indices in the near term, but the S&P 500 could find support if economic data improves or if inflation rates show positive momentum.
Related News
Key inflation gauge shows price increases stayed flat from prior month
Nov 27, 2024, 10:02 AM
October's Personal Consumption Expenditures report is the latest data the Fed will consider in its next interest rate decision.
Stock market today: S&P 500, Dow waver near records ahead of key inflation data
Nov 27, 2024, 10:07 AM
Investors are looking to a reading on the Fed's preferred inflation gauge to provide clues to rate cuts.
Strategas chairman and CEO Jason Trennert joins 'The Big Money Show' to discuss Trump's plans for new tariffs on China, Mexico, and Canada.