Key Takeaways
- The S&P 500 added 1.1% on Friday, Dec. 20, 2024, as signs of decelerating inflation provided some reassurance heading into the year-end holidays.
- Shares of data analytics software firm Palantir Technologies soared ahead of the stock’s addition to the Nasdaq 100 Index next week.
- Carnival shares moved higher after the cruise operator topped quarterly profit estimates and issued a positive 2025 outlook.
Major U.S. equities indexes pushed higher on the final day of an eventful week in the markets.
Friday’s gains came as the latest Personal Consumption Expenditure (PCE) data—a gauge of inflation closely monitored by the Federal Reserve—showed price increases decelerating in November versus the previous month. Investors hoping for signals that the Fed will follow this week’s interest-rate reduction with additional cuts in 2025 welcomed the reading.
The S&P 500 popped 1.1% higher, clawing back a portion of the losses posted earlier in the week as the Fed struck a cautious tone regarding next year’s policy moves. The Dow and the Nasdaq were up 1.2% and 1%, respectively.
Shares of solar technology provider Enphase Energy (ENPH) rose 8.6%, gaining the most of any S&P 500 stock, after OTR Global lifted its view on the stock to “mixed” from “negative.” According to channel-checks by the market research firm, Enphase is benefitting as competitor SolarEdge (SEDG) experiences a drop in U.S. orders for solar string inverters. Earlier this week, Enphase launched shipments of its home battery system in India.
Palantir Technologies (PLTR) stock jumped 8.5%, extending a run-up that has now carried shares of big data analytics firm around 369% higher in 2024. Palantir said earlier this week that it extended its contract with the U.S. Army, which uses the company’s artificial intelligence (AI) software to help accelerate key decision-making processes. Palantir stock is set to join the influential Nasdaq 100 Index next week.
Match Group (MTCH) shares gained 6.7% on Friday, bouncing back from earlier losses this week following downgrades by Jefferies and Morgan Stanley. Although analysts are concerned about growth trends for Tinder, the online dating company’s largest platform, a recent Wall Street Journal report highlighted investments to improve the app’s user experience and noted that reduced expectations could offer Match some flexibility to execute its turnaround plan.
Cruise operator Carnival (CCL) posted better-than-expected fourth-quarter profits, boosted by year-over-year gains in passenger ticket, onboard and other revenue. The company struck an upbeat tone for 2025, noting the volume of bookings taken during the fourth quarter for voyages next year exceeded equivalent figures from last year despite lower available inventory. Carnival shares sailed 6.4% higher Friday, while shares of Norwegian Cruise Line Holdings (NCLH) added 5.9%.
Medical device manufacturer Dexcom (DXCM) added a feature this week to its over-the-counter glucose monitors that uses generative AI to provide patients with personalized health tips. Dexcom shares advanced 5.6% on Friday as Zacks Equities Research published a report noting that upbeat earnings and revenue growth expectations could help underpin strong returns for the stock in 2025.
Tesla (TSLA) shares wrapped up a volatile week of trading with a daily decline of 3.5%, logging the S&P 500’s weakest performance. Friday’s downturn came as the carmaker recalled around 700,000 vehicles in the U.S. to address an issue affecting tire pressure monitors.
Package delivery giant FedEx (FDX) trimmed its full-year revenue guidance and announced plans to separate its freight business. While FedEx shares were essentially flat on Friday, the announcement raised concerns about the near-term performance of the less-than-truckload, or LTL, freight industry, weighing on other trucking stocks. Old Dominion Freight Line (ODFL) shares sank 3.4%.
