Wall Street Bounces on Friday After Inflation Data
US stocks bounced back on the last triple witching day of the year, with the S&P 500 up 1%, the Nasdaq rising 0.8% while the Dow gained 497 points.
The rally followed cooler-than-expected inflation data, with November’s PCE index showing a 2.4% year-over-year increase, slightly below expectations.
This helped alleviate market concerns sparked by the Federal Reserve’s forecast of fewer rate cuts in 2025. Sentiment was also weighed down by the threat of a government shutdown and global market pressure from tariff threats.
The healthcare sector took the spotlight after Novo Nordisk’s new obesity drug missed targets in its test, driving the pharmaceutical giant’s ADRs to plunge 17.7%. In turn, equities for competitor Eli Lilly gained 1.4%. Considering the week, all the three major averages sank 2.3% with the Dow booked its worst week since 2023.
Source: Trading Economics
