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U.S. stocks fell, ending a six-week winning streak for the S&P 500 and the Dow Jones.
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Rising bond yields and resilient economic data contributed to the market’s pause.
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Investors will focus on the upcoming technology earnings, with AI monetization trends in the spotlight.
U.S. stocks traded mostly lower on Friday, capping a down week for the S&P 500 and the Dow Jones Industrial Average.
Both averages ended a six-week winning streak on Friday, while a rally in mega-cap tech stocks delivered a seventh week of gains and a new record high for the Nasdaq.
A big jump in bond yields this week has been a major hurdle for investors after a strong rally since the start of the month.
Ten-year U.S. Treasury yields have risen nearly 20 basis points this week as macro data suggests the economy remains resilient and on solid footing.
Meanwhile, investors are paying close attention to third-quarter earnings results, with a number of mega-cap tech companies set to report results next week, including Apple, Meta, Microsoft and Amazon.
Commentary on AI monetization trends will be top of mind for investors as they peruse earnings reports.
“We expect major tech earnings next week to show a mix of steady operating performance, AI-driven revenue acceleration and resilient advertising that signals continued health and innovation,” Global X research analyst Ido Caspi told Business Insider.
“We expect to see further evidence that generative AI is moving along the growth curve and a continued shift from experimentation to widespread monetization,” he added.
To date, 36% of S&P 500 companies have reported results. Of these companies, 79% exceed earnings expectations by an average of 6%, while 58% exceed revenue expectations by an average of 2%, Fundstrat data shows.
Traders will sift through several economic data updates next week, including September’s personal consumption expenditures, which is the Fed’s preferred inflation gauge, as well as October’s jobs report. September data showed that as many as 254,000 jobs were added that month.
A similarly high figure would likely further dampen expectations for rate cuts as markets see less urgency from the Fed to support the economy.
Here’s where the US indexes stood at 4pm on Friday:
Here’s what else happened today:
