At the opening of the American market, the DOW JONES rose 0.15% to 48,818 points, while the S&P 500 fell 0.18% to 6,888 points, in the first minutes of trading. For its part, the Nasdaq OMX0 fell 0.42% to 25,520.90 points.
Wall Street is coming off a day from less to more yesterday, in which investors poured into cyclical stocks, considered more sensitive to the economy, while reaping profits in growth-oriented securities, especially those linked to the artificial intelligence sector.
Thus, the DOW JONES rose 646 points (1.3%), driven by a 6% increase in Visa and solid gains from Nike and UnitedHealth Group to reach new all-time highs at 48,704.01 points. Also new highs for the S&P 500 (6,901 points), which rose a more modest 0.21%. However, the Nasdaq Composite closed the day with a drop of 0.3%, due to the fall of technology stocks such as Alphabet or NVIDIA. And, of course, Oracle, which ended up collapsing 10.8%.
“The Dow Jones had a great day and, if the trend continues, it could be the beginning of an expansion,” predicts Chris Zaccarelli, chief investment officer at Northlight Asset Management, in statements reported by the CNBC. «The key for the bull market to continue is for the rest of the market (the so-called 493) to rise even without the help of the Magnificent 7. If the baton is passed and the rally extends, we would not be surprised to see a rebound towards the end of the year and the beginning of next year.»
Throughout the week, The Dow Jones has accumulated a rise of 1.6% until Thursday’s closewhile the S&P 500 has advanced 0.45%. The Nasdaq has lagged, with gains of less than 0.1%.
All this, in a week that has been marked by the Fed’s decision to cut interest rates to a range between 3.50% and 3.75%. Investors have welcomed these cuts, the third in a row, as well as other measures such as bond purchases, although the institution still predicts only one additional rate cut in 2026.
Also welcomed was the Fed’s decision to announce that it has unanimously reappointed all regional Reserve bank presidents for new five-year terms, which will begin on March 1, 2026.
On the corporate front, Broadcom shares fell more than 4% before the bell even though the chipmaker beat Wall Street expectations with its fourth-quarter report, further stating that AI chip sales in current quarter should double year-over-yearreaching 8.2 billion dollars.
Broadcom expects first-quarter revenue of approximately $19.1 billionwhich would represent year-on-year growth of 28%, thus allaying investor fears about the strength of AI demand. The value accumulates a rise of 75% in the year.
Slight declines for retailer Costco despite also beating analysts’ quarterly expectations, as its sales rose 8.2% year over year. The company posted earnings of $4.50 per share on revenue of $67.31 billion, compared to analyst expectations of $4.27 per share in earnings and $67.14 billion in revenue.
One of the great protagonists of Wall Street is Lululemon Athletica, which shoots up to almost double digits at the opening after announcing that CEO Calvin McDonald to step down effective January 31after more than a year of poor performance for the company. Lululemon’s board of directors is working with a leading executive search firm to find a replacement, the company said in a news release.
In the third quarter, the company posted adjusted earnings that amounted to $2.59 per share, beating expectations of $2.22 per share. Revenue increased 7% year-over-year, reaching $2.6 billion, beating estimates of $2.47 billion. Shares of the sportswear retailer have plunged about 51% so far this year.
For its part, Tilray Brands, the company that markets medicinal cannabis, rose 36.7% at the beginning of the session. The development comes after The Washington Post noted that the Trump administration was seeking to ease federal restrictions on marijuana.
Other markets
In commodity markets, oil prices fall as the doubts of operators due to excess supply and a possible peace agreement between Russia and Ukraine, although to a lesser extent than yesterday.
Concerns about supply disruptions in Venezuela had boosted oil prices earlier in the session, as the United States prepares to intercept more ships carrying Venezuelan oil. US West Texas oil futures fell 0.28% to $57.45 per barrel, while international benchmark Brent crude fell 0.38% to $61.07.
Gold, meanwhile, continues its rise to highs, amid the volatility inherent to the market. rises for futures of 1.5% to $4,377, again riding towards new highs.
The euro fell 0.18% against the dollar to leave the exchange rate at 1.1724 dollars for each common European currency, so the US currency is on track to close its third week in negative territory.
Deutsche Bank, Goldman Sachs and other major research houses predict that the greenback will continue its decline next year, as the Federal Reserve continues to reduce interest rates. According to the consensus estimates compiled Bloomberg, dollar index to weaken by around 3% by the end of 2026.
In fixed income, the ten-year US bond offers an upside yield of 4.196%, while the two-year bond offers a yield of 3.547%.
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