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

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.

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.

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.

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