Optimistic End of the Week on the US Stock Markets

The week ended on a high note for investors at the leading US stock exchanges, as the relevant stock indices showed their stronger side. This occurs at a time when traders take a holiday break to observe Martin Luther King Jr. Day. Simultaneously, this day coincides with the planned inauguration of Donald Trump for his second term as President. The optimism is fueled by the hope that the Fed might continue to lower interest rates in 2025. This assumption gains traction from signs of declining inflation rates. As a result, the S&P 500 rose by 1%, while the Nasdaq, supported by the technology sector, increased by 1.5%. The Dow, on the other hand, recorded a rise of 0.8%. Intel was in the spotlight with a remarkable price increase of 9.3%, giving the S&P 500 the best performance on Friday. The reason for this was rumors of a potential takeover, as Intel transforms its venture capital division into a standalone unit, with the company remaining as a lead investor. Likewise, SLB, the leading oil and gas field service provider, posted solid quarterly figures and pleased investors with a higher dividend and increased share buybacks. Despite cautious forecasts for the coming year, the stock price rose by 6.1%. Truist Financial showed revenue and profit developments that exceeded expectations, causing the stock to rise by 5.9%. Conversely, J.B. Hunt Transport Services plummeted by 7.4%; disappointing quarterly results and declining volumes weighed on the logistics company. Eli Lilly experienced a setback with a price drop of 4.2%. The US health authorities' announcement to initiate price negotiations for popular diabetes and weight-loss drugs made investors nervous. Novo Nordisk was also affected, with its ADRs falling by 5.3%. Finally, Fair Isaac Corp. recorded a decline of 3.5% after last week's earnings were revised due to analyst forecasts. Although increasing business numbers are expected, the mortgage environment remains challenging due to high interest rates.