Wall Street Mixed: S&P 500 Nears Record, Dow Slips, Nasdaq Rises/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street traded mixed Friday as the S&P 500 hovered near record highs, with the Dow slipping 255 points and the Nasdaq gaining 0.2%. Mixed earnings reports, including gains from Booking Holdings and Celsius Holdings, contrasted with losses from UnitedHealth and Rivian. AI optimism and steady Treasury yields kept markets stable.
Wall Street Market Trends Quick Looks:
- S&P 500: Down 0.1% after nearing record highs.
- Dow Jones: Falls 255 points (-0.6%) amid UnitedHealth and Rivian declines.
- Nasdaq: Rises 0.2%, supported by tech optimism and AI developments.
- Top Gainers:
- Booking Holdings +2.6% (strong Q4 earnings)
- Celsius Holdings +23.1% (acquires Alani Nu for $1.65B)
- Alibaba +4% (boost from AI initiatives)
- Top Losers:
- UnitedHealth -8.6% (DOJ probe into Medicare billing)
- Akamai Technologies -11.6% (disappointing revenue outlook)
- Rivian -5.2% (weak 2025 guidance despite improved sales)
- Treasury Yields:
- 10-year: down to 4.49%
- 2-year: slightly lower at 4.26%
- Global Markets:
- Japan’s Nikkei 225 +0.3% (inflation remains high)
- Hong Kong’s Hang Seng +4% (Alibaba profit surge fuels rally)
- Investors Focus: Mixed earnings, Fed’s rate outlook, and AI-driven market momentum.
Wall Street Mixed: S&P 500 Nears Record, Dow Slips, Nasdaq Rises
Deep Look:
Wall Street saw mixed trading Friday as investors balanced strong corporate earnings against persistent inflation concerns and cautious Federal Reserve rate expectations. The S&P 500 edged down 0.1%, hovering near record highs set earlier in the week, while the Dow Jones Industrial Average dropped 255 points (0.6%), weighed down by healthcare and auto sector declines. In contrast, the Nasdaq composite gained 0.2%, buoyed by tech optimism and enthusiasm surrounding artificial intelligence advancements.
Corporate Earnings Highlights:
- Booking Holdings surged 2.6% after beating analysts’ Q4 profit expectations, driven by revenue growth and operational cost cuts.
- Celsius Holdings skyrocketed 23.1% following its acquisition of Alani Nu for $1.65 billion, a move analysts believe will rapidly boost profits.
- Akamai Technologies fell 11.6% despite a strong Q4 report, as investors focused on its disappointing revenue forecast for 2025.
- UnitedHealth Group plunged 8.6% after reports of a DOJ investigation into its Medicare billing practices. The healthcare giant offered no immediate comment.
- Rivian shares slid 5.2% despite reporting better-than-expected Q4 sales, as its 2025 guidance missed Wall Street projections.
Inflation and Interest Rate Outlook:
Treasury yields remained stable, reflecting investor uncertainty about future rate cuts:
- 10-year Treasury yield: decreased slightly to 4.49% from 4.51%.
- 2-year Treasury yield: edged down to 4.26%, closely tracking Fed policy expectations.
Investors continue to monitor inflation data, which could delay anticipated interest rate cuts. Strong corporate earnings have helped offset fears of prolonged high rates, but market momentum remains sensitive to Federal Reserve signals.
Global Market Movements:
- Japan’s Nikkei 225 rose 0.3% as inflation stayed above the Bank of Japan’s target, potentially prompting further rate hikes.
- Hong Kong’s Hang Seng soared 4%, fueled by Alibaba’s robust profit report and AI developments. AI excitement continues to be a major driver of global stock gains.
Investor Takeaway:
While the S&P 500 heads for a modest weekly loss of less than 0.1%, corporate earnings and global economic developments are providing mixed signals. Positive surprises from companies like Booking Holdings and Celsius are balancing out concerns stemming from regulatory probes and cautious corporate forecasts. With AI advancements continuing to excite investors, markets remain buoyed by tech optimism despite underlying economic headwinds.
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