Wall Street wrapped up Friday’s trading session on a mixed note, with investors keeping a close eye on next week’s highly anticipated Nvidia earnings report while growing increasingly cautious about the Federal Reserve’s interest rate outlook.
The Nasdaq eked out a 0.13% gain, closing at 22,900.59, buoyed by strong performances from major AI-driven stocks. Meanwhile, the S&P 500 slipped slightly, and the Dow Jones Industrial Average fell 0.65% to 47,147.48, pressured by declines in blue-chip companies like UnitedHealth Group (-3.2%) and Visa (-1.8%).
The session began with a steep selloff that dragged all three major indexes down more than 1%. While markets later recovered, investor sentiment remained shaky as worries deepened over stubborn inflation and the possibility that the Fed may delay rate cuts previously expected in December.
According to CME Group’s FedWatch tool, the probability of a 25-basis-point rate cut in December has tumbled from 67% last week to under 50%, as inflation persists—fueled partly by President Donald Trump’s global tariff policies.
Kansas City Fed President Jeffrey Schmid amplified those concerns, warning that inflation worries “go well beyond” tariff effects. Schmid, who dissented during the Fed’s October rate cut, hinted he may oppose another reduction if policymakers push for it in December.
Despite broader market caution, Nvidia, Microsoft, and Palantir each gained over 1%, as traders positioned themselves ahead of Nvidia’s pivotal quarterly report due Wednesday. Analysts say the AI chipmaker will be the center of Wall Street’s attention, with its results seen as a litmus test for the sustainability of the recent AI-driven market boom.
“If Nvidia disappoints, they will be punished,” said Mike Dickson of Horizon Investments. “But you’ll likely see dip buyers step in quickly to stabilize things.”
Sector-wise, seven of the S&P 500’s eleven sectors ended lower. Materials led declines with a 1.18% drop, followed by financials at 0.97%.
For the week, the S&P 500 gained 0.1%, the Dow rose 0.3%, and the Nasdaq slipped 0.5%.
Beyond U.S. markets, global trade developments also shaped sentiment. Switzerland announced U.S. tariffs on Swiss goods would fall from 39% to 15%, offering relief for exporters.
In corporate news, Warner Bros Discovery climbed 4% after adjusting CEO David Zaslav’s employment agreement amid an ongoing strategic review. Cidara Therapeutics saw its shares more than double following Merck’s agreement to acquire the company in a $9.2 billion deal.
Market breadth weakened, with declining stocks outpacing gainers by a 1.7-to-1 margin on the S&P 500. Trading volume remained steady at 20.1 billion shares, just shy of the 20-session average.
As investors head into next week, all eyes remain firmly on Nvidia—whose performance could determine whether Wall Street regains momentum or slips into deeper uncertainty.