US equity indexes ended mixed as a cooler inflation print and Micron Technology's (MU) solid fiscal Q1 results helped partially offset souring sentiment against the so-called artificial intelligence trade this week.
* The S&P 500 closed at 6,834.50 on Friday versus 6,827.41 a week ago. The Nasdaq Composite stood at 23,307.62 compared with 23,195.17 a week earlier. The Dow Jones Industrial Average ended at 48,134.89, versus 48,458.05 at the end of last week.
* The week began on a downbeat note after the Oracle (ORCL) and Broadcom (AVGO) sell-off amid concerns ranging from gross margin guidance, soaring capital expenditure, and negative free cash flow. Blue Owl Capital's (OWL) reported move to drop a $10 billion deal backing Oracle's data center facility further hit the AI sentiment. Oracle's rebuttal that Blue Owl wasn't selected for the deal failed to alleviate investor concerns.
* However, on Thursday, the year-over-year consumer price index growth unexpectedly slowed in November. Core CPI increased less than forecast. That lifted expectations for more monetary policy easing next year than the solo cut currently guided by the Federal Reserve. As of late Friday, the market is pricing a 46% probability for a 25-basis-point reduction in March, versus the 41% likelihood a week ago, according to the CME FedWatch tool.
"A surprisingly sharp decline in US consumer price inflation should grease the wheels for further Fed easing in 2026," Sal Guatieri, senior economist at BMO Capital Markets, said in a report.
* Also on Thursday, Micron Technology (MU) reported a jump in fiscal Q1 adjusted earnings and revenue, topping expectations. The company also beat the fiscal Q2 projections.
* A surprise cooling of inflation and Micron's strong results boosted the AI trade. The Global X Artificial Intelligence & Technology ETF (AIQ), with net assets of $6.97 billion and investments in firms related to AI, jumped 1.9% on Friday, hovering close to the week's highest.
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