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US stock market report – inflation nears 40-year high, Oracle soars

All three US benchmarks posted a week of strong gains, with the Dow Jones finishing 0.6% higher on Friday.

The S&P 500 outperformed, gaining 1% while the Nasdaq jumped 0.7% after shares in Oracle (NYSE: ORCL) finished over 15% higher.

The cloud computing and infrastructure application provider reported a US$1.25 billion loss but surging revenue growth, which saw sales increase 22% in its core business.

Inflation highest in 40 years

All eyes were on the November inflation print with some experts predicting a rate in excess of 7%.

The end result was a 6.8% increase in prices over the last 12 months, the fastest rate in close to 40 years.

As this was below expectations, the market actually rallied post the announcement.

A closer look shows the main source of inflation remains the increasing cost of energy, 30% contribution, with motor vehicles around 20%.

US stock markets post strong weekly gains

Over the week the consumer and technology business continued to dominate, with the Dow Jones gaining 4%, the S&P 500 3.8% and the Nasdaq up 3.6% despite signs of the rollout of new COVID-19 restrictions around the world.

US stock market movers

Here’s how other popular US stocks performed on Friday to close out the week.

  • Ford (NYSE: F) up 9.6%
  • Costco (NASDAQ: COST) up 6.6%
  • Adobe (NASDAQ: ADBE) up 3.5%
  • Cloudflare (NYSE: NET) down 6.5%
  • Sea (NYSE: SE) down 6.6%
  • Upstart (NASDAQ: UPST) down 10.5%

This positive lead from US markets is set to push the S&P/ASX 200 (ASX: XJO) higher at the open this morning. For a round-up of the latest news, check out my ASX 200 morning report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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