Stock Rally Pauses Near All-Time Highs Amid Economic Crosscurrents
Key Takeaways:
* Stock market momentum paused after a relentless rally, but remains at near-record levels.
* Chipmaker weakness weighed on trading, but the S&P 500 gained 2% this week.
* President Trump's economic policies and softened stance on China eased concerns.
* The dollar experienced its steepest weekly drop since November 2023.
* Treasury volatility expectations reached their lowest level since mid-December.
Market Overview:
The S&P 500 closed down 0.3%, the Nasdaq 100 declined 0.6%, and the Dow Jones Industrial Average slipped 0.3%. The Bloomberg Magnificent Seven (megacap) index fell 0.4%, while the Russell 2000 dropped 0.3%. Nvidia Corp. underperformed, shedding 3.1%.
Economic Data and Policy:
* US consumer sentiment dipped for the first time in six months, while business activity growth slowed slightly.
* The 10-year Treasury yield declined three basis points to 4.62%.
* President Trump called for lower oil prices, potentially easing inflation concerns.
Corporate Highlights:
* Tobacco stocks gained as a proposed ban on menthol cigarettes was withdrawn.
* Verizon Communications reported strong financial results with gains in new mobile and broadband customers.
* American Express profits increased 12% driven by consumer spending.
* Texas Instruments issued a disappointing earnings forecast due to sluggish demand and higher costs.
* Boeing faced further losses and charges, highlighting the challenges ahead.
* Novo Nordisk's experimental weight-loss drug showed promising results in early trials.
Currency and Commodities:
* The Bloomberg Dollar Spot Index fell 0.5%.
* Bitcoin rose 1.8% to $105,023.51.
* West Texas Intermediate crude prices remained stable.
* Gold gained 0.6% to $2,771.32 per ounce.