On Friday, stocks secured a modest victory as major indexes notched their third consecutive weekly win. Wall Street grappled with retail updates and oil’s decline, reflecting signs of an economic slowdown.
The S&P 500 (^GSPC) inched higher by 0.13%, and the Dow Jones Industrial Average (^DJI) finished just above the flatline. The Nasdaq Composite (^IXIC), weighted towards technology, saw a rise of about 0.08%.
The positive momentum carried over from a robust midweek rally, driven by increasing belief that the Federal Reserve might ease back on interest rate hikes. Cooler inflation and softer jobs data were interpreted as indications that the central bank’s tightening measures are beginning to impact the US economy. a modest victory
Some investors identified similar warnings in retail updates. Gap (GPS) delivered a pessimistic forecast for holiday sales in its late Thursday earnings report, aligning with Walmart and Target in cautioning that a decline in consumer spending could impact the crucial shopping season.
Oil prices suggested a potential economic slowdown as they entered a bear market ahead of the upcoming OPEC+ meeting later in November. Although West Texas Intermediate crude (CL=F) and Brent crude (BZ=F) both surged nearly 4% on Friday, they experienced a weekly loss after hitting their lowest levels in almost four months.
Meanwhile, Alibaba’s (BABA) decision to abandon the spin-off of its cloud unit drew attention to struggles at the Chinese e-commerce giant, whose shares sank in New York to erase more than $20 billion in market value. The decision, which Alibaba said was fueled by Washington’s chip curbs, also highlighted that US-China ties are still frayed after a meeting between the country’s presidents failed to make a splash.