US stocks hovered near record highs on Friday, with the Nasdaq lagging as post-election euphoria ebbed and China’s latest stimulus plan fell flat.
The S&P 500 (^GSPC) rose 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) dropped roughly 0.1%. The Dow Jones Industrial Average (^DJI) rose slightly.
Stocks are trending toward a downbeat end to a stellar week of gains driven by optimism that President-elect Donald Trump’s policies will boost the economy. But the initial “Trump trade” rush appears to be fizzling out as Wall Street questions whether Trump will be able to push through his ambitions policies. The dollar (DX=F) and Treasury yields, for instance, have given up many of their post-election gains.
Disappointment over China’s new fiscal stimulus also dampened market spirits, putting pressure on oil prices, the yuan and local stocks. The $1.4 trillion plan to refinance local government debt left investors unconvinced of its potential to spur a faltering economy.
Even so, Wall Street major gauges are still on track for strong weekly wins after racking up more records on Thursday as the Federal Reserve delivered the expected interest-rate cut. The S&P 500 is closing in on crossing the 6,000 level for the first time.
On the corporate front, Sony (SONY) shares popped in premarket trading after the PlayStation maker posted a 73% jump in quarterly profit.
Meanwhile Paramount Global (PARA) reported third quarter earnings on Friday that showed further improvement in its streaming business it gets ready to combine with Skydance Media.
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