U.S. Stocks Close: Dow Rises More Than 60 Points, Nasdaq Ends Six Consecutive Gains, Technology Stocks Mostly Fall
On January 27th, U.S. stocks closed higher after recent strong economic growth and declining inflation data. The Dow Jones Industrial Average rose 0.16%, the Nasdaq Composite fell 0.36%, and the S&P 500 Index fell 0.06%. Most popular technology stocks fell, with Intel posting its biggest daily drop in three and a half years, falling nearly 12%.
According to the financial news, U.S. fourth-quarter GDP data showed strong economic growth and declining inflation, increasing market bets on the Federal Reserve cutting interest rates starting in March. Investors continue to pay attention to the financial reports of companies such as Tesla, and U.S. stocks closed higher.
Despite the declines in the Nasdaq and S&P 500, the Dow gained more than 60 points, posting a cumulative gain of 0.65% for the week. The S&P 500 rose 1.06% and the Nasdaq rose 0.9% for the week. However, many technology stocks experienced declines, with Intel being the standout, posting its largest single-day decline since July 2020.
In the energy market, West Texas Intermediate crude futures for March delivery rose 0.8% to close at $78.01 per barrel, marking the largest weekly increase since September 2021.
This week, Chinese concept stocks experienced mixed performance, with several stocks rising and falling. However, the declines in Chinese concept stocks did not weigh heavily on the overall market performance.
The recent PCE data, the Fed’s preferred inflation measure, showed that real personal consumption expenditures in the United States climbed for the second consecutive month, with real disposable income rising 0.1%. Economists expect core PCE prices to rise 3% year-on-year.
The Federal Reserve’s upcoming monetary policy meeting next Tuesday and Wednesday is widely expected to keep interest rates unchanged, with traders trimming expectations for a rate cut in March.
Tech giant Tesla faced a significant drop in stock prices following lower-than-expected fourth-quarter results and a warning of slower sales growth for 2024. Tesla announced a recall of over 199,000 vehicles in the U.S. due to rearview camera image display issues.
Other notable developments included Microsoft’s layoff of 1,900 employees, Amazon and Google parent Alphabet’s investments in artificial intelligence company Anthropic, and Apple’s announcement of changes to comply with the EU’s Digital Market Act.
In summary, while the U.S. stock market closed higher, the varying performance of individual stocks and the upcoming actions of central banks will continue to impact market dynamics. Investors are advised to exercise caution and prudence when making investment decisions.