Stock market today: Dow, S&P 500, Nasdaq rebound on fresh inflation data to cap volatile week

Published On Dec 20, 2024, 4:14 PM

US stocks saw a rebound on Friday, closing higher as investors reacted positively to a report showing a slowdown in inflation for November. However, all major indices ended the week lower due to earlier losses associated with concerns over the Federal Reserve's cautious approach to interest rate cuts. The Nasdaq Composite rose 1% while the Dow Jones gained 1.2% and the S&P 500 increased by 1.1%. Despite the positive Friday close, the week was marked by a total decline in all three indices, driven partly by fears of a potential government shutdown and geopolitical tensions, particularly related to trade threats from President-elect Trump regarding Europe. Additionally, Novo Nordisk's stock plunged nearly 20% after a disappointing trial result for its obesity drug, affecting investor sentiment across the market.

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Stock Forecasts

AI prediction results, not representative of any investment advice.

SPY View SPY chart on TradingView

Positive

Stocks generally positively reacted to the core PCE inflation report, which showed deceleration in price increases. However, uncertainties include the potential government shutdown and Federal Reserve policy changes. The positive sentiment might continue in the near term unless faced with further geopolitical or economic negatives.

NVO View NVO chart on TradingView

Negative

Novo Nordisk's dramatic drop in stock value due to underperformance in drug trial results could signal negative sentiment in the healthcare sector, particularly for companies reliant on breakthrough treatments. Concerns over product efficacy and investor confidence might lead to a continued downturn.

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