Stock Market Today: Dow, Nasdaq ride rate-cut optimism to clinch record close
Investing.com — The Dow and Nasdaq clinched record closes Friday, amid optimism for rate cuts next year even as a Federal Reserve official attempted to pour cold water on aggressive rate cuts next year.
By 16:00 ET (21:00 GMT), The Nasdaq 100climbed 0.3% to close at record of 16,623.45, above its prior record close on Nov. 21 of 16,573.34. The Dow Jones Industrial Average rose 0.1%, or x points to a record close for third straight session. The S&P 500 index closed 0.1% lower, but notched its seventh-straight weekly win.
New York Fed President John Williams told CNBC in an interview Friday that talk of rate cuts is still «premature» and the central bank could still tighten policy if needed. The New Fed president's remarks rein in some of the aggressive bets on rate cuts markets are expecting for next year, boosting Treasury yields.
The yield on the 2-year Treasury, which is sensitive to Fed policy decision, rose 5 basis points to 4.451%, while the U.S. 10-year yield fell 2 bps to 3.915%.
On the economic front, manufacturing activity fell more than expected in December, but services activity, which makes up the bulk of the inflation, increased by more than expected.
Costco Wholesale (NASDAQ:COST) stock rose 4.5% after the membership-only retailer posted quarterly sales and profit that beat projections after the close Thursday, helped by demand for cheaper groceries. It also rolled out a special dividend to shareholders.
Costco has moved to keep prices low in a bid to entice budget-conscious shoppers wary of overspending during a time of elevated inflation and interest rates.
Lennar Corporation (NYSE:LEN) fell more than 3% after its better-than-expected Q4 results were overshadowed by margin guidance for Q1 amid
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