[New York Stock Market] Mixed Close Amid Fed-Preferred Inflation Slowdown... S&P 500 Rises for 8 Consecutive Weeks

The major indices of the U.S. New York stock market closed on the 22nd (local time) with the S&P 500 index slightly rising, while the Dow Jones Industrial Average slightly declined, ending mostly flat.

Trading Floor of the New York Stock Exchange, USA
Photo by Yonhap News

On that day at the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 37,385.97, down 18.38 points (0.05%) from the previous session. The large-cap focused S&P 500 index rose 7.88 points (0.17%) to 4,754.63, and the tech-heavy Nasdaq index closed up 29.11 points (0.19%) at 14,992.97. The market opened higher but turned downward amid increased profit-taking pressure during the session, widening losses before closing.

The S&P 500 index rose for the eighth consecutive week, marking its longest winning streak since 2017. By sector, 10 out of 11 sectors in the S&P 500 advanced, with the exception of consumer discretionary.

Ahead of the Christmas holiday, expectations for a Federal Reserve (Fed) rate cut in March grew after news that the Fed's preferred inflation gauge fell to its lowest level since 2021. According to data from the U.S. Department of Commerce, the core Personal Consumption Expenditures (PCE) price index for November rose 3.2% compared to the same period last year, the lowest since April 2021. This figure excludes volatile energy and food prices and was below the market forecast of 3.3% and the previous month's 3.4%.

The November core PCE price index rose 0.1% month-over-month, in line with market expectations and unchanged from October. Annualized over six months, the November core PCE price index came to 1.9%, falling below the Fed's target of 2%. This suggests that inflation is steadily moving toward the Fed's goal.

Including energy and food prices, the November PCE price index increased 2.6% year-over-year, slowing from the previous month's 2.9% rise. This is the lowest level since February 2021. Month-over-month, it declined 0.1%, turning downward from the previous month's flat level. This marks the first month-over-month decline in the PCE price index since April 2020.

Among individual companies, Nike's stock fell more than 11% after the company lowered its sales forecast. Foot Locker's shares also dropped about 4%, following Nike's decline.

Caruna Therapeutics' stock surged over 47% on news that pharmaceutical company Bristol Myers Squibb plans to acquire it. Rocket Lab's shares rose more than 22% after its subsidiary signed contracts worth $515 million with the government.

Coinbase Global's stock rose over 4% after JMP Securities raised its price target from $107 to $200 and maintained an "outperform" rating. Occidental Petroleum's shares increased about 0.6% following news that Berkshire Hathaway recently increased its stake in the company to 27.7% through additional stock purchases.

Meanwhile, the New York financial markets will be closed on the 25th for the Christmas holiday.