The S&P500 index ended a five-session series of record highs this Friday, due to Intel's (INTC) revenue forecast disappointment, while US economic data pointed to a moderation in inflation. Although the S&P500 and the Nasdaq technology index finished the session lower, the three major stock indices recorded their third consecutive week of gains and the 12th positive week in 13.
A report from the US Department of Commerce indicated that the PCE index - the Federal Reserve's preferred measure of inflation - increased moderately in December, keeping inflation below 3% for the third consecutive month and reinforcing the possibility of interest rate cuts this year. On Thursday, data showed a positive reading on US economic growth in the fourth quarter.
Intel fell by 11.9%, reaching its lowest level in six weeks, after issuing a revenue forecast below estimates, as it tries to catch up in the race for artificial intelligence (AI) and deals with a weak computer market. The Philadelphia Semiconductor Index (SOX) fell by 2.9% on the second day of decline after reaching a record high on Wednesday.
The Dow Jones (DJi) increased by 0.16% to 38,108.43 points. The S&P500 (SPX) declined by 0.07% to 4,890.97 points. The Nasdaq (IXIC) fell by 0.36% to 15,455.36 points. Last week, the S&P500 saw a 1.06% rise, the Dow Jones gained 0.65%, and the Nasdaq advanced by 0.94%.
In the past few sessions, the S&P500 has once again reached new records for the first time in two years, extending an upward trend driven by optimism about the US economy, expectations of lower interest rates, and bets on artificial intelligence.
