Stocks experienced modest gains on Friday, concluding the week on a positive note as data from the Federal Reserve’s preferred inflation measure strengthened the argument for a potential interest rate cut in the upcoming week. For the week, the S&P 500 climbed by 0.3%, while the Nasdaq saw an increase of nearly 1%. Both indices have recorded consecutive weekly gains. The Dow Jones Industrial Average rose approximately 0.5%. On Friday morning, the government’s report on September’s personal consumption expenditures (PCE) price index revealed a year-over-year increase in the core rate, which excludes volatile food and energy prices, that was cooler than anticipated. Although the PCE report was delayed due to a government shutdown, it provided welcome insight in a market eager for data before the Federal Reserve’s two-day policy meeting slated for Tuesday and Wednesday.
Market Response to Fed Speculations
It has been a few weeks since New York Fed President John Williams reignited the discussion around a potential rate cut by the central bank. During this period, the S&P 500 has surged by 5%, finishing the week just below its all-time high close of 6,890 recorded on October 28. Below are some highlights from this week’s market activity.
Meta Platforms Adjusts Strategy
Shares of Meta Platforms rose by 4% over the week following a report from Bloomberg indicating that the parent company of Instagram and Facebook plans to reduce its metaverse investments by as much as 30%. This strategic shift by CEO Mark Zuckerberg is seen as sensible, particularly if it allows the company to focus on more quickly monetizable technologies, such as Meta’s smart glasses and artificial intelligence initiatives. The company has been facing financial pressure, and its stock price has suffered since late October when management raised its capital expenditure forecasts despite robust earnings.
Salesforce Sees Stock Surge
Salesforce shares surged by 13% this week after reporting a significant earnings beat. Despite being the top performer in the portfolio this week, Salesforce remains down 22% year-to-date. This decline highlights the company’s ongoing challenges in reassuring investors that the rise of generative AI does not threaten its traditional seat-based business model in customer relationship management software. Along with its third-quarter results for fiscal 2026 released on Wednesday evening, management also updated its guidance upward and revealed additional paid contracts for its AI platform, Agentforce. During an appearance on Thursday’s episode of “Mad Money” with Jim Cramer, Salesforce CEO Marc Benioff emphasized that AI is becoming a “commodity feature” that enhances the value of their CRM offerings.
CrowdStrike Reports Strong Quarter
On Tuesday evening, CrowdStrike announced fiscal 2026 third-quarter results that exceeded expectations, along with optimistic forward guidance. Jim Cramer labeled it a “trophy quarter,” citing record free cash flow, annual recurring revenue, and operating income reported by the cybersecurity firm. While the stock remained relatively stable throughout the week and did not react strongly to the positive earnings report, it has become a trend for CrowdStrike—and other cybersecurity stocks like Palo Alto Networks—to experience a post-earnings dip before rebounding in subsequent weeks. In light of the report, we maintained our buy-equivalent rating on CrowdStrike and raised our price target to $550 from a previous $520.
Recent Trading Activity
This week, we issued three trade alerts. On Monday, we increased our position in Boeing as the stock showed signs of stabilization after a sharp decline following its earnings report in November. We opted not to purchase shares during the downturn to avoid investing in a volatile situation and preferred to wait for a calmer market environment. On Tuesday, we acquired additional shares of Procter & Gamble after the stock dipped following CFO Andre Schulten’s comments about a challenging U.S. market. We anticipate better days ahead for P&G and are building a defensive position in case the momentum in AI investments wanes. On Wednesday, we realized some profits on Goldman Sachs, which reached a record high by Friday’s close. We remain confident in this long-term investment.
Investing Club Information
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