New York, Nov 14 – Wall Street closed out the session on Friday with a mixed performance as investors shifted their focus toward next week, when Nvidia is set to release its quarterly earnings. The anticipation surrounding the chipmaking giant added to an already tense atmosphere in the market, where concerns about interest rate cuts and the broader economic landscape continued to influence trading behavior. Although the Nasdaq managed to finish slightly higher and the S&P 500 edged just below the flat line, all three major indexes had spent part of the morning in a sharp decline that briefly pulled them down more than one percent.
In recent days, traders have grappled with the uneasy combination of elevated stock valuations and uncertainty surrounding the Federal Reserve’s next move. The technology sector, especially companies tied to the rapid growth of artificial intelligence, has been a major engine behind the market’s rise over the past several years. Yet the same high valuations that powered the rally have also sparked worries that even a modest shift in policy or sentiment could cool momentum. Nvidia (NVDA.O), Palantir (PLTR.O), and Microsoft (MSFT.O) each rose more than 1% during Friday’s session, offering a modest cushion to the broader market.
One of the biggest drivers of investor hesitation in November has been the fading expectation that the Federal Reserve will cut rates at its December meeting. A blend of stubborn inflation readings and the added price pressures stemming from global tariffs intensified doubts about the timing of a policy shift. Based on current tracking from the FedWatch tool, the probability of a quarter point cut in December has fallen below 50%, down notably from the 67% likelihood that traders priced in only a week earlier. The shift reflects growing conviction that inflation has not cooled as quickly or as sharply as policymakers had hoped.
Kansas City Federal Reserve President Jeffrey Schmid added to those concerns on Friday. He remarked that inflation was running hotter than he believes is safe and stressed that the issue extends far beyond tariff related effects. Schmid made it clear that if the December meeting moves toward reducing interest rates, he may once again voice dissent, much as he did in October when he and another policymaker pushed back against lowering the benchmark rate. His warning heightened the market’s sense that the path to easing may be more complicated than previously assumed.
Next week’s spotlight will undoubtedly fall on Nvidia. The company has become central to the artificial intelligence boom, producing the chips that power many of the most advanced systems currently in development. Analysts and investors alike see its earnings report as a potential turning point for the broader AI trade. Mike Dickson, who leads research and quantitative strategies at Horizon Investments in Charlotte, North Carolina, noted that Nvidia’s results could influence market mood considerably. He said that if the company falls short of expectations, the stock will likely take a hit. Still, he added that dip buyers may return quickly if the pullback is sharp, helping to stabilize the broader market much as they did during Friday’s early slump.
Elsewhere in the market, several large players weighed on the Dow. UnitedHealth Group (UNH.N) dropped more than 3%, and Visa declined nearly 2%, adding downward pressure on the index. Sector performance was mixed, with seven of the eleven S&P 500 groups finishing lower. Materials led the list of laggards with a decline of just over 1%, followed by financials, which fell nearly 1%. Despite the choppy close to the week, the S&P 500 managed a small gain of one tenth of a percent. The Dow rose three tenths, while the Nasdaq slipped about half a percent over the five day stretch.
Investors have also been paying close attention to signs of stress in the labor market and the broader economic outlook. After an extended government shutdown, many analysts expect gaps and inconsistencies in official economic reports for some time. These lapses make it more difficult for traders and policymakers to gauge the true state of economic momentum, adding another layer of uncertainty to an already complicated environment.
On the international front, Swiss officials announced that tariffs on goods shipped to the United States would be reduced from 39% to 50%, a shift that could ease some cost pressures for exporters. Corporate headlines added more movement to individual stocks. Warner Bros Discovery (WBD.O) gained 4% after the company revised the employment agreement of CEO David Zaslav as part of a broader strategic evaluation. Meanwhile, Cidara Therapeutics saw an explosive jump in its share price, more than doubling after Merck agreed to acquire the company in a deal valued at close to $9.2 billion. That news positioned Cidara as one of the day’s standout performers.
Market breadth reflected a slightly negative tone. Declining stocks outnumbered advancers in the S&P 500 by a ratio of roughly 1.7 to one ratio. The index recorded 12 new highs and 10 new lows, while the Nasdaq logged 52 new highs but 295 new lows, underscoring persistent weakness in smaller and mid sized tech names. Trading volume across United States exchanges reached about $20.1 billion shares, just shy of the recent 20 session average.