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Some optimism among investors dampened after Fed Bank of New
York President John Williams said on Friday it was too soon to
be talking about rate cuts.
Also, the rate sensitive real estate and utilities sectors gave
back some of their big gains tied to the Fed statement.
Stocks rallied this week after the Fed in its policy statement
Wednesday signaled lower borrowing costs in 2024.
The Dow Jones industrial average notched another record high
close on Friday, and an index of semiconductors had its biggest
weekly gain since May.
"What I think we got this week is that (Fed Chair Jerome Powell)
doesn't want to overly punish the economy with (rates) being
higher for longer for no good reason," said Kim Forrest, chief
investment officer at Bokeh Capital Partners in Pittsburgh.
"I don't know if we're going to get whatever is considered a
Santa Claus rally, but it looks like all things being
considered, we could drift higher from here."
According to preliminary data, the S&P 500 lost 4.52 points, or
0.10%, to end at 4,715.03 points, while the Nasdaq Composite
gained 52.36 points, or 0.25%, to 14,798.43. The Dow Jones
Industrial Average rose 35.59 points, or 0.10%, to 37,276.95.
The day also marked the expiry of quarterly derivatives
contracts tied to stocks, index options and futures, also known
as "triple witching."
Shares of Costco Wholesale jumped after the retailer topped Wall
Street estimates for first-quarter results due to demand for
cheaper groceries.
Earlier on Friday, a survey showed domestic business activity
picked up in December amid rising orders and demand for workers,
which could further help to allay fears of a sharp slowdown in
economic growth in the fourth quarter.
(Reporting by Caroline Valetkevitch; additional reporting by
Shristi Achar A and Johann M Cherian in Bengaluru; Editing by
Shounak Dasgupta, Maju Samuel and Aurora Ellis)
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