Indexes end the week mixed after inflation scare and Nvidia earnings boom

May 25, 2024

2 minutes read

trader nyse screens — : Traders work on the floor of the New York Stock Exchange (NYSE) on June 01, 2023 in New York City. Despite the passing the debt ceiling bill in the U.S. House of Representatives, the Dow was lower in morning trading.Spencer Platt/Getty

US stocks ended the week mixed on Friday after an inflation scare and Nvidia’s earnings report.
Investors will look ahead to next week’s PCE data to gauge which direction inflation is headed.
Nvidia earnings helped push up tech stocks and drove the Nasdaq 100 to an overall gain this week.

US stocks traded higher on Friday, but finished the week mixed after an inflation scare following strong economic data and the release of Nvidia’s solid first-quarter earnings report.

For the week, the Dow Jones Industrial Average dropped 2.3%, while the S&P 500 traded about flat and the Nasdaq 100 rose about 1.4%.

Strong economic data from the PMI release on Thursday set off a fresh inflation scare, with robust services and manufacturing readings hinting that the Federal Reserve will keep interest rates higher for longer.

The chances of a Fed rate cut were pushed back from September to the November FOMC meeting, according to the CME FedWatch Tool.

Investors will look to next week’s release of PCE data to gauge which direction inflation is moving.

“Next Friday’s release of the PCE report could offer the market a decidedly positive catalyst if the data comes in cooler than expectations. Absent that, even if the PCE remains steady the market could be satisfied that inflation remains somewhat contained, but yesterday’s market action suggests that investors and traders alike are losing patience with the Fed’s inability to quell prices that insist on rising,” LPL Financial’s chief global strategist Quincy Krosby said.

Meanwhile, Nvidia’s strong first-quarter earnings report released on Wednesday helped drive AI-related tech stocks sharply higher. The Nasdaq 100 finished the week at a new record closing high. Shares of the chip maker soared to record levels above $1,000 as it reported results that beat estimates for both earnings and revenue, while drumming up excitement for its next generation Blackwell chip.

Here’s where US indexes stood at the 4:00 p.m. closing bell on Friday:

Here’s what else happened today:

In commodities, bonds, and crypto:

West Texas Intermediate crude oil jumped 1.11% to $77.72 a barrel. Brent crude, the international benchmark, was higher by 0.92% to $82.11 a barrel.
Gold edged lower by 0.11% to $2,334.60 per ounce.
The 10-year Treasury yield fell one basis point to 4.47%.
Bitcoin rose 1.76% to $69,142.