U.S. stocks closed with a mixed performance on Friday, following a month of steep declines. The market's volatility continued, with the Dow Jones Industrial Average experiencing a 0.65% drop, the S&P 500 slipping by 0.05%, and the Nasdaq Composite Index rising 0.13% after a three-day losing streak. This week's performance was a contrast to the previous week's gains. The tech sector, particularly AI leaders like Nvidia, Oracle, Palantir Technologies, and Tesla, showed resilience, rebounding from sharp declines in the previous session. However, concerns about the sustainability of the AI rally persist, with the Oracle rout highlighting worries over stretched valuations and heavy reliance on debt financing. David Krakauer, vice president of portfolio management at Mercer Advisors, noted that investors are pricing in future growth that is difficult to measure, leading to market swings. The Federal Reserve's policy decision also adds to market uncertainty, with the odds of a quarter-point rate cut in December now below 50%, down from 95% a month ago.
