US stocks took a breather on Friday after wrapping up a stellar month, as investors waited for Federal Reserve Chair Jerome Powell to potentially shed light on whether an interest-rate cut lies ahead.
Dow Jones Industrial Average (^DJI) futures hovered above the flatline, losing momentum after reaching a fresh closing high for 2023. Futures on the S&P 500 (^GSPC) and on the tech-heavy Nasdaq 100 (^NDX) were down around 0.1% and 0.2%, respectively.
Stocks soared in November to post their best monthly performance since 2022 as conviction that the Fed was done with rate hikes morphed into growing hopes for rate cuts before the summer.
“It’s one of the best months we’ve seen in the last decade,” eToro US investment analyst Callie Cox told Yahoo Finance Live. “And I think it shows us how a lot of investors were caught off guard by the Fed’s flexible stance after the Nov. 1 meeting.”
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Given that, the focus will be firmly on what Powell has to say on policy at his two appearances Friday, especially after October data showed inflation cooled to its lowest levels since 2021. Hopes are he may give a clear steer on the central bank’s thinking after a stream of Fed speakers took differing stances.
Meanwhile, oil prices steadied, having lost ground after OPEC+’s additional output curbs failed to convince skeptical investors. WTI crude futures (CL=F) were trading around $76 a barrel, while Brent (BZ=F) futures were below $83.
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