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Investing.com--The S&P500 closed higher Friday, as Intel led a climb in tech amid holiday-shortened trade.
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As of 1:00 p.m.ET (18:00 GMT), the benchmark S&P 500 rose 0.5%, and the tech-heavy Nasdaq Composite added 0.7%.
Markets on Wall Street were closed on Thursday for the Thanksgiving holiday.
Intel leads chip stocks higher; Nvidia continues to stutter
Intel surged more than 10% after TF International Securities analyst Ming-Chi Kuo, a prominent Apple analyst, suggested that the chipmaker could begin making Apple’s lowest-end M chips.
Kuo said in a post on X that Apple plans to use Intel’s 18A chips to "begin shipping its lowest-end M processor, utilizing the 18AP advanced node, as early as 2Q–3Q27, but the actual timeline remains contingent on development progress following the receipt of PDK 1.0/1.1."
Advanced Micro Devices Inc (NASDAQ:AMD), Broadcom Inc (NASDAQ:AVGO), and Texas Instruments Incorporated (NASDAQ:TXN) were trading higher, while Nvidia continued to stumble amid concerns about rising data center competition.
Wall Street buoyed by December rate cut bets, Fed Chair speculation
The major U.S. averages have rebounded this week, aided by renewed bets that the Federal Reserve will cut interest rates next month.
Although some Fed policymakers have called for borrowing costs to remain unchanged at their current range of 3.75% to 4% due to a recent lack of fresh economic data, other officials have argued for a cut to help bolster an ailing American labor market. The Fed previously slashed rates in October and September.
According to CME FedWatch, there is now a roughly 85% chance of a quarter-point drawdown in rates at the Fed’s December 9-10 gathering, up sharply from last week.
Meanwhile, speculation over a more dovish successor to Fed Chair Jerome Powell also aided sentiment, after a report said White House economic adviser Director Kevin Hassett was the front-runner to be the next Fed Chair. Hassett is expected to largely back President Donald Trump’s demands for sharply lower interest rates.
This has helped to ease emerging fears around a possible bubble forming in the artificial intelligence boom. These concerns, driven in large part by frothy tech stock valuations, circular financing in the AI sector, and an uncertain economic backdrop, have threatened to weigh on stocks throughout the month.
CME outage disrupts trading
CME has said all of its futures markets are now open and trading, according to a notice on its website. In a statement, CME said the outage was due to a "cooling issue" at a vital data center.
A host of contracts covering everything from stocks and bonds to crude oil and gold were disrupted by the problem, which came as volumes are anticipated to be muted during Friday’s holiday-shortened session.
PCE due next week
Much of the focus next week is set to revolve around a host of economic readings, which will be among the few official data points the Fed will have prior to its December meeting.
Key among these is the personal consumption expenditures price index -- one of the Fed’s preferred inflation gauges -- which will be published on December 5. However, delays to the release of the figures because of a record-long federal government shutdown mean that the data will only cover the month of September.
As a result, some analysts have suggested that these numbers may not be totally reflective of the current state of the American economy. Government officials have scrapped inflation and labor readings for October as well, citing a lack of time needed to collect data for the reports due to the shutdown.
(Scott Kanowsky, Ambar Warrick contributed reporting.)