FX.co ★ US Stocks Close Flat to Negative

On Friday, U.S. stocks bounced back from significant early losses, yet they still concluded the session either flat or lower. Investors showed renewed interest in major technology stocks, reevaluating the probability of an interest rate cut in December. This activity left the S&P 500 and Nasdaq 100 largely unchanged, while the Dow closed down by 280 points. Technology companies such as Nvidia, Microsoft, Oracle, and Palantir saw gains ranging from 1.1% to 2.4%, recovering some ground lost during Thursday's notable tech decline. In contrast, defensive stocks underperformed, with United Healthcare and Home Depot falling by 3.2% and 1.6%, respectively. Market breadth remained uneven, as numerous large-cap stocks reached new highs, while others hit year-long lows. This scenario highlights a market still struggling with inflated AI valuations, increased funding requirements, and a reduction in expectations for imminent monetary easing. The resolution of the extended government shutdown eliminated one area of uncertainty but introduced another, as delayed data releases left traders without clear direction before the upcoming Federal Reserve decision, perpetuating volatility as investors reposition ahead of the year-end.