U.S. Stocks Hold Firm with Investors Counting Down to Fed Update

Stocks drifted higher on Friday but couldn’t quite reach new records, as traders chose to hold back ahead of next week’s Federal Reserve interest-rate decision. Meanwhile, Treasuries headed for their weakest weekly performance since June.

‍

The S&P 500 added 0.2%, easing slightly from an earlier 0.6% rally that briefly pushed the benchmark within striking distance of its October all-time high. The Nasdaq 100 advanced 0.4%, while the Russell 2000 fresh off a record close on Thursday slipped back. In the bond market, selling pressure continued, lifting the 10-year Treasury yield to 4.14%.

‍

A delayed reading of the Fed’s preferred inflation metric did little to alter expectations for a rate cut next week. Derivatives markets continue to price in a slow, steady path of easing that extends into 2026.

‍

The core personal consumption expenditures price index which strips out food and energy rose 0.2% in September. That matched economists’ forecasts and marked the third consecutive month of identical increases. The year-over-year rate remains just under 3%, underscoring that inflation has cooled from its peak but still has a sticky, persistent element.

‍

“Overall, the numbers support another 25-basis-point cut next week, but they don’t suggest the Fed needs to speed up the pace of reductions in 2026,” said Ian Lyngen of BMO Capital Markets.

‍

Not all Fed watchers are convinced a December cut is guaranteed. Rick Rieder, BlackRock’s chief investment officer for global fixed income, told Bloomberg Television ahead of the data release that he expects dissenting views and debate at the upcoming meeting.

‍

Elsewhere, tech sentiment brightened after Hon Hai Precision Industry Co., a key manufacturing partner for Nvidia Corp., reported strong sales. The upbeat news added to momentum in the AI space. In China, Moore Threads Technology Co. one of the country’s top AI-chip developers surged 425% in its Shanghai trading debut, highlighting intense investor demand for domestic semiconductor plays.

‍

Not every major tech name benefited from the upbeat mood. Shares of Netflix Inc. slipped after the streaming giant announced a partnership with Warner Bros. Discovery Inc., a tie-up that drew mixed reactions from analysts and investors.

‍

Crypto markets also showed signs of strain. Institutional demand for the largest US Bitcoin ETF continues to weaken. BlackRock’s iShares Bitcoin Trust (IBIT) has now posted its longest streak of weekly outflows since launching in January 2024 a signal that many professional investors remain cautious.

‍

According to Bloomberg data, investors withdrew more than $2.7 billion from the fund in the five weeks through Nov. 28. With another $113 million leaving the ETF on Thursday, IBIT is on track for its sixth straight week of net redemptions. Pressure on Bitcoin itself intensified, with the token sliding below $90,000 on Friday.

‍

The broader market tone remains one of cautious optimism: equities continue to grind higher, but investors appear unwilling to make oversized moves with a major Fed decision just days away. The combination of sticky inflation, weakening Treasury prices, and uncertainty around the central bank’s near-term outlook kept traders in wait-and-see mode.

‍