US stocks hovered around record highs on Friday, with the Nasdaq falling as post-election euphoria faded and China’s latest stimulus plan fell apart.
The S&P 500 (^GSPC) rose 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) fell about 0.1%. The Dow Jones Industrial Average (^DJI) rose slightly.
Stocks are heading for a downbeat end to a banner week of gains, driven by optimism that President-elect Donald Trump’s policies will boost the economy. But the initial ‘Trump trade rush’ appears to be dissipating as Wall Street questions whether Trump will be able to follow through on his ambitious policies. For example, dollar yields (DX=F) and government bonds have given up much of their post-election gains.
Disappointment with China’s new fiscal stimulus also dampened market sentiment, putting pressure on oil prices, the yuan and local stocks. The $1.4 trillion plan to refinance local government debt left investors unconvinced of its potential to boost a flagging economy.
Still, Wall Street’s key indicators are still on track for strong weekly gains after hitting more records on Thursday as the Federal Reserve made its expected rate cut. The S&P 500 is approaching the 6,000 point mark for the first time.
On the corporate front, shares of Sony (SONY) soared in premarket trading after the PlayStation maker posted a 73% quarterly profit. Meanwhile, shares of Nissan ( NSANY ) fell as investors weighed in on the automaker’s plans to cut 9,000 jobs.
Meanwhile, Paramount Global (PARA) reported third-quarter earnings on Friday, showing further improvement in its streaming business that it is preparing to combine with Skydance Media.
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