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- U.S. stocks traded mixed after major indicators gave mixed signals on the economy.
- The core inflation rate stabilized below 3%, but personal consumption increased by 0.7%.
- Intel fell nearly 12% after its latest earnings report gave a weak outlook for the current quarter.
U.S. stocks spooked on Friday after two major indexes sent mixed signals about the economy.
Major indexes were mixed as investors took in spending data and the latest inflation indicators.
Core inflation rose 2.9% last month, the slowest pace in nearly three years, according to personal consumption spending data recommended by the Federal Reserve. Meanwhile, consumer spending rose 0.7% as Americans wrapped up the holiday season with an extra $133.9 billion in personal spending in December.
Mixed data shows that although inflation is falling, the Fed’s high interest rates are doing little to dampen strong consumer demand and could help keep inflation high. .
Intel’s results disappointed investors, sending the stock down nearly 12% and pushing down the Nasdaq index. The company’s fourth-quarter results beat expectations, but weak guidance for the quarter disappointed investors.
Yields on 2-year and 10-year bonds rose to 4.35% and 4.14%, respectively.
“The market is a little bearish today as last month’s consumer spending data came in at a faster pace than expected, which contributed to yesterday’s strong GDP growth,” said Jose Torres, senior economist at Interactive Brokers. said. “While this morning’s inflation data was largely in line with expectations, bond traders are demanding more compensation as strong consumer spending raises the risk of further price pressure.”
Here are the U.S. indexes immediately after the 4pm closing bell on Friday:
Here’s what else is going on:
In Commodities, Fixed Income and Cryptocurrencies:
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