Dow hits fresh record, stocks close out strong week as inflation cools

LIVE COVERAGE IS OVER13 updates

• Fri, September 27, 2024 at 2:05 PM MDT

  Dow closes with new record

  Mixed trading on Friday still came with weekly wins as all three major gauges were in the green for the week. Investors appeared to welcome the latest inflation report that showed price pressures continuing to sink towards the Federal Reserve’s 2% target.

  The Dow Jones Industrial Average (^DJI) gained 0.3% or more than 100 points to clinch a record close. The S&P 500 (^GSPC) lost 0.1%, but is only coming down from a fresh record of its own. The tech-heavy Nasdaq Composite (^IXIC) sank about 0.4%, but led the weekly wins overall, gaining 1%, compared to the S&P and the Dow’s 0.6%.

• Fri, September 27, 2024 at 2:02 PM MDT

  Chip stocks close lower despite earlier gains

  US chip stocks fell Friday after a week of ups and downs. The PHLX Semiconductor Index (^SOX) dropped nearly 1.8%, but remains up 4.3% from last week.

  Micron (MU) fell down around 2.2% after skyrocketing Wednesday on its raised outlook for the upcoming quarter, fueled by AI demand. Micron was the first chipmaker to report financial results this earnings season, and its positive report raised fellow chip stocks such as Advanced Micro Devices (AMD).

  Some negative news for Nvidia (NVDA) came when AI server maker Super Micro Computer (SMCI), one of Nvidia’s biggest customers, saw shares plummet Thursday after reports of a DOJ probe into alleged accounting violations. Bloomberg also reported Friday that the Chinese government is pressuring companies to buy AI chips within its borders rather than from Nvidia. Nvidia fell 2.2%, though analysts said there was no singular reason for the stock’s drop.

  Daniel Newman, CEO of the Futurum Group, noted that semiconductors are a volatile industry. Nvidia stock has also been more volatile since its 10-for-1 stock split in June, Newman said.

  Bob O’Donnell, founder of TECHnalysis Research, said Nvidia and other chip companies still display strong fundamentals and will likely continue to perform at high levels. Newman said that there is “strong optimism right now from the top leaders across the industry.”

• Fri, September 27, 2024 at 1:30 PM MDT

  A look at the week ahead

  As a momentous September gives way to October, new jobs numbers will play a huge role in setting expectations for the days ahead.

  The September jobs report, which is scheduled to arrive on Friday, will offer the latest snapshot of the labor market. Should unemployment come in line with expectations, that will likely paint the Fed in a favorable light, as central bankers decided to cut interest rates by 50 basis points. Their efforts to ease back a restrictive monetary policy were designed in part to protect a labor market that has cooled somewhat. If, however, jobs numbers come in worse than expected, the data will offer fuel to critics who have argued that the Fed acted too slowly in cutting rates.

  Fed Chair Jerome Powell is set to offer remarks ahead of the jobs report, on Monday, as investors look for signals on the central bank’s next move

  On the corporate front, major…