In a week marked by economic uncertainties and corporate warnings, the US stock market managed to secure its third consecutive weekly win as major indexes navigated through retail updates and oil price declines signaling a potential economic slowdown.
On Friday, the S&P 500 (^GSPC) eked out a modest victory, edging higher by 0.13%, while the Dow Jones Industrial Average (^DJI) finished just above the flatline. The Nasdaq Composite (^IXIC), dominated by tech stocks, rose by about 0.08%, contributing to the overall positive sentiment on Wall Street.
The momentum driving these gains can be traced back to a midweek rally fueled by growing market conviction that the Federal Reserve may ease back on interest rate hikes. The market interpreted cooler inflation and softer jobs data as indications that the central bank’s tightening measures might be exerting pressure on the U.S. economy.
Retail updates further fueled concerns about economic headwinds. Gap Inc. (GPS) delivered a bleak forecast for holiday sales in its earnings report late Thursday, aligning with warnings from retail giants Walmart and Target, alluding to a potential downturn in consumer spending that could impact the crucial holiday shopping season.
In the energy sector, oil prices hinted at a global economic slowdown as they sank into a bear market ahead of the upcoming OPEC+ meeting scheduled later in November. West Texas Intermediate crude (CL=F) and Brent crude (BZ=F) managed to advance nearly 4% on Friday, attempting to recover from losses earlier in the week that saw prices touching their lowest levels in nearly four months.
Meanwhile, Alibaba Group Holding Limited (BABA) found itself in the spotlight as the Chinese e-commerce giant decided to abandon the spin-off of its cloud unit. This strategic shift drew attention to Alibaba’s ongoing struggles, causing its shares to plummet in New York and wiping out more than $20 billion in market value. Alibaba cited Washington’s chip curbs as the driving force behind the decision, underscoring the continued strain in U.S.-China relations, especially following a recent meeting between the two countries’ presidents that failed to yield substantial progress.
To sum up, the market closed the week on a high note, clinching a third consecutive weekly win, showcasing the enduring strength and optimism among investors despite prevailing economic and corporate headwinds. As Wall Street braces for the impact of these economic indicators and corporate warnings, investors remain vigilant, seeking insights into the trajectory of the U.S. economy and the potential implications for the global markets.
Source: Yahoo Finance
