Wall Street extended its gains from last week as a drop in oil prices helped investors shake off concerns about inflation, the Nvidia scandal, and potential interest rate hikes. By Friday’s close, the Dow Jones Industrial Average added 1,062 points for the week, while the S&P 500 gained 186 points, one of its strongest weeks since summer. The tech-heavy Nasdaq also rose, ending the week with a 557-point gain despite volatility tied to the Nvidia scandal.
The oil price decline began on November 4, fueled by hopes that the midterm elections would lead to a resolution of the Iran war. However, Brent crude prices rose slightly midweek after President Donald Trump stated, “we don’t need a deal with Iran,” settling around $96 on Friday.
Inflation remained a key focus this week. The consumer price index rose 0.4%, exceeding the 0.3% forecast, while core inflation increased 0.3%, also higher than expected. The producer price index rose 0.3%, slightly below expectations but still signaling elevated inflation. Experts noted that annualized inflation remains too high, nearly guaranteeing a 25 basis point interest rate hike by the Federal Reserve next month.
Fed Governor Christopher Waller hinted at more aggressive action if inflation data remained high, stating, “ensuring that the promised hikes are implemented in a reasonable period of time does.” Meanwhile, small business optimism remained flat, though expectations for better conditions improved slightly, according to the National Federation of Independent Business.