Stock market reaches the culmination of another record-breaking week on Wall Street
The stock market today saw a mixed performance, with some indices hitting all-time highs for a second consecutive day, while others dipped lower. Nvidia stock experienced a 4.2% drop after reporting weaker revenue for its latest quarter than analysts had anticipated. Conversely, Newmont rallied 4.3% following the announcement of its $439 million sale of its investment in Canada's Orla Mining. FedEx delivered stronger profit and revenue for the latest quarter than analysts expected, leading to a 2.3% rise in its stock. The S&P 500 rose 32.40 points to 6,664.36, and the Dow Jones industrial average added 172.85 points. The Nasdaq composite climbed 0.7%. However, the Federal Reserve finds itself in a precarious position, as the economy is experiencing high inflation and a slowing job market. The Fed has only one tool to address both issues, and moving interest rates can hurt one in the short term. Stephen Miran, a Federal Reserve Open Market Committee member, advocated for further rate cuts in 2025, including a total of 125 basis points this year. Other Fed members also forecast additional rate reductions totaling about 100 basis points by 2027. Daniel Siluk, Head of Global Short Duration and Liquidity at Janus Henderson, supports the Fed’s resumption of rate cuts based on recent data indicating weaker wage growth and a stable economy. The Fed's decisions are closely watched by the market, as they can significantly impact investment strategies. The ongoing discussions about potential interest rate cuts reflect the Fed's efforts to strike a balance between controlling inflation and maintaining a healthy job market. Gold has benefited from expectations for lower interest rates and worries about high inflation. The yield on the 10-year Treasury edged up to 4.12% from 4.11% late Thursday. In international markets, Japan's Nikkei 225 fell 0.6% after the Bank of Japan said it will sell some of its massive trove of Japanese stock funds. Indexes mostly ticked lower in Europe and Asia. President Trump's tariffs are threatening to push inflation higher, at least temporarily. The leaders of the United States and China agreed to meet at a regional summit taking place in South Korea at the end of October. This meeting offers a glimmer of hope for a resolution to the ongoing trade tensions between the two economic powerhouses. Choe writes for the Associated Press.
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