US stocks took a breather on Friday after wrapping up a stellar month, as investors waited for Federal Reserve Chairman Jerome Powell to highlight whether there is an interest rate cut ahead.
The S&P 500 (^GSPC) is hovering near the flat line, while the Dow Jones Industrial Average (^DJI) rose 0.2%, or 80 points. The Nasdaq Composite (^IXIC) led the losses, down 0.3%.
Stocks rose in November to post their best monthly performance since 2022 as conviction that the Fed was done raising interest rates turned into growing hopes for a rate cut before the summer.
“It’s one of the best months we’ve seen in the last decade,” Callie Cox, US investment analyst at eToro, told Yahoo Finance Live. “And I think this shows us how surprised a lot of investors were by the Fed’s flexible stance after the November 1 meeting.”
Read more: What a pause on federal interest rate hikes means for bank accounts, CDs, loans and credit cards
Given this, the focus will be firmly on what Powell has to say on policy in his two matches on Friday, especially after October data showed inflation fell to its lowest levels since 2021. Hopes are high that he may give clear direction on the central bank’s thinking after taking a set of… Fed spokesmen have different positions.
Meanwhile, oil prices stabilized, having lost ground after additional production curbs imposed by OPEC+ failed to convince skeptical investors. West Texas Intermediate crude futures (CL=F) were trading at around $76 per barrel, while Brent crude futures (BZ=F) were below $83.
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Tesla shares fall after Cybertruck debut
Tesla’s (TSLA) long-awaited Cybertruck has arrived, with the company delivering the first batch of the vehicle to buyers. At first glance, the market didn’t seem impressed, with shares of the all-electric automaker down 2% in morning trading on Friday.
The slide also comes after CEO Elon Musk faced the fallout from his interview at the New York Times (NYT) DealBook conference earlier this week, where he cursed advertisers who fled his social media company X.
Drivers interested in the base model Cybertruck will have to hand over $60,990, more than 50% more expensive than the company estimated years ago when it announced the new model. “That’s not a large segment of the population that can afford that, especially when interest rates are there,” said Jessica Caldwell, head of insights at Edmunds, an automotive research firm.
The truck’s launch caps a volatile year for Tesla, Yahoo Finance’s Josh Schafer reports, which has seen its stock price soar on the prospects of its AI targets while also coming under pressure amid multiple price cuts and weak margins.
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Stocks are trending in morning trading
Here are some of the stocks topping Yahoo Finance’s ETFs page during morning trading on Friday:
Pfizer (PFE): Shares of the pharmaceutical giant fell 6% on Friday morning after the company said it would not go ahead with a study of a two-dose obesity treatment, following a high level of side effects in patients participating in the trials.
Bitcoin (BTC-USD): The dominant cryptocurrency rang in December with optimism as the world’s largest cryptocurrency extended a rally near a 19-month high, as investors bank on approval of a spot exchange-traded fund that would invite more capital investment into the industry. Bitcoin rose nearly 2% to exceed $38,000.
Ulta (Ulta): The beauty supply retailer continued its climb Friday morning, rising more than 12%, after the company reported third-quarter results that were slightly better than Wall Street had expected. The cosmetics retailer reported adjusted earnings of $5.07 per share, compared to $5.00 expected.
Marvell (MRVL): Shares fell 6% after the semiconductor company offered fourth-quarter guidance that fell short of expectations for the top and bottom lines.
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Stocks opened slightly lower before Powell’s comments
Wall Street has seen the last month of the day with some pessimism as investors prepare for Federal Reserve Chairman Jerome Powell to deliver his remarks later this morning.
The S&P 500 (^GSPC) fell about 0.2%, while the Dow Jones Industrial Average (^DJI) remained almost unchanged. The Nasdaq Composite (^IXIC) fell 0.3%.
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