Stock market today: US stocks close mixed but gain for the week as the AI trade stumbles

Stock market today: US stocks close mixed but gain for the week as the AI trade stumbles

Traders work on the floor of the New York Stock Exchange.Spencer Platt/Getty Images

  • U.S. stocks ended the week higher even as the AI ​​trade showed signs of exhaustion.

  • The Dow Jones led with a 1.5% gain this week, while the S&P 500 and Nasdaq 100 rose about 0.5%.

  • Some economists are calling on the Fed to cut interest rates in July as the risk of recession increases.

U.S. stocks closed mixed on Friday, but ended the week higher even as the artificial intelligence trade showed signs of stumbling.

This week, the market was led higher by Dow Jones Industrial Average, which represents an increase of almost 2%. THE S&P500 And Nasdaq100 ended the week up about half a percent.

The meteoric rise of Nvidia The stock took a break on Thursday and Friday, with the stock down about 10% from its intraday high of $140.76.

Other hot AI stocks like Broadcom, DellAnd Super microcomputer also fell between 1% and 3% during Friday’s trading session.

Investors are paying close attention to new economic data, as rumors multiply about a possible interest rate cut by the Federal Reserve in July, following a rise in weekly jobless claims.

An interest rate cut in July currently has a probability of just 10%, according to the CME FedWatch tool. one economist estimates that the chances of a reduction at the July policy meeting are closer to 60%.

Such a move by the Federal Reserve would aim to ensure that an economic recession does not occur as inflation continues to fall.

Economist Claudia Sahm told CNBC on Friday that the Fed was ‘playing with fire’ by keeping interest rates higher for longer.

“My benchmark is not the recession,” Sahm said. “But it’s a real risk, and I don’t understand why the Fed is increasing this risk. I’m not sure what they expect.”

Here’s where the US indexes stood at the 4:00 p.m. closing bell on Friday:

Here’s what happened today:

In commodities, bonds and cryptocurrencies:

  • West Texas Intermediate Crude oil fell 0.78% to $80.66 per barrel. Brent crudethe international benchmark, fell 0.60% to $85.20 per barrel.

  • Gold fell 1.46% to $2,334.50 per ounce.

  • The 10-year Treasury yield remained stable at 4.26%.

  • Bitcoin fell 1.25% to $64,034.

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