New Telegraph

Nasdaq pushes higher as Amazon shines

Stocks lost some steam in midday trading on Friday as the S&P 500 (^GSPC) reversed earlier gains while the Nasdaq Composite (^IXIC) held higher as earnings from Amazon (AMZN) and Intel (INTC) eased worries around Big Tech and investors weighed a fresh reading on US inflation. The tech-heavy Nasdaq, which closed Thursday deep in the red, bounced back on Friday, up roughly 0.9% while the benchmark S&P 500 (^GSPC) erased gains to trade mostly flat. The Dow Jones Industrial Average (^DJI) dropped roughly 0.6 per cent, or more than 180 points. The moves come amid a tough week for stocks, which has seen the S&P 500 threaten to join the Nasdaq in correction territory amid a sell-off fueled by mixed earnings from megacap techs.

On Friday, the Federal Reserve’s preferred inflation metric showed prices continued to cool in September — a critical data point that policymakers will consider for the next interest rate decision on Nov. 1. The Personal Consumption Expenditures (PCE) Index grew 3.4 per cent year over year in September, in line with August’s revised increase and also in line with expectations.

“Core” PCE, which excludes the volatile food and energy categories, grew 3.7 per cent, down from the revised 3.8 per cent from the month prior and in line with what economists surveyed by Bloomberg had expected. Month over month, core PCE rose 0.3 per cent in September, an uptick from the 0.1 per cent rise seen in August, which was the lowest rate since November 2020. The latest US GDP reading on Thursday came in hot, a sign that the Fed’s higher-for-longer stance isn’t holding back the American consumer. But some analysts are questioning how long that resilience can last, given recurring words of caution in companies’ outlooks alongside earnings.

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