© Reuters
Investing.com — U.S. stocks gave up some gains Thursday, as the post-Fed rally pushed stocks into overbought territory, triggering concerns that the surge may have been too much too soon.
By 14:25 ET (19:25 GMT), the was up 81 points, or 0.2%, the index rose 0.1%, higher and the climbed fell 0.1%.
Post-Fed rally fades as stocks pullback from overbought territory
The three key indexes including the Dow, S&P 500 and Nasdaq retreated from session highs after breaching technically “overbought” levels, or a level above 70 on the relative strength index, or RSI, a technical tool that indicates whether a security is overbought or oversold.
The earlier intraday surge in stocks came a day after the forecast three rate hikes for next, with Fed chairman Jerome Powell announcing that it discussion of when to cut rates was now on the table.
Jobless claims fall short, retail sales in upside surprise
Initial jobless claims dropped 19,000 to a seasonally adjusted 202,000 for the week ended Dec. 9, but while that was short of economists estimates, some continue to see a material weakening ahead.
Small businesses, in particular, are facing pressure from higher interest that have hiked up monthly business, Jefferies said.
“The increase to-date has likely been a force behind the overall slowdown in hiring. It has not translated to layoffs yet, but it will eventually,” it added.
Still, the consumer continued to show strength, with U.S. retail sales unexpectedly rising 0.3% on the month in November as the holiday shopping season got off to a brisk start.
Adobe stutters on earnings stage as guidance fails to impress; Apple (NASDAQ:) retreats from all time high
Adobe Systems (NASDAQ:) stock fell 7% after the computer software company issued conservative guidance for 2024’s earnings and revenue.
Apple turned negative after rising to an all time intraday high of $199.62 as the investors appeared to take some profit on big tech, with Alphabet Inc Class A (NASDAQ:), Microsoft Corporation (NASDAQ:) also trading in the red.
Semiconductor stocks jumped to an all-time high, powered by a rise Intel (NASDAQ:) to fresh 52-week highs after the chipmaker unveiled new AI chips to take the fight to leaders NVIDIA Corporation (NASDAQ:) and Advanced Micro Devices Inc (NASDAQ:).
Moderna , Rivian in rally mode
Moderna (NASDAQ:) stock rose over 12% after an experimental messenger RNA cancer vaccine it co-developed with Merck received positive experimental results.
Rivian Automotive Inc (NASDAQ:) jumped more than 12% after the electric vehicle maker clinched a deal to supply AT&T with commercial van and R1 vehicles as part of pilot program.
Occidental Petroleum gets boost from Buffett to lead energy stocks higher
Occidental Petroleum (NYSE:) jumped nearly 3% underpinning the broader energy sector after Warren Buffett’s Berkshire Hathaway (NYSE:) acquired nearly 10.5 million shares of the oil giant for about $588.7 million.
As well as a boost from Occidental Petroleum, a jump in also supported the broader energy sector as growing hopes of sanguine U.S. economy backdrop amid expectations for an accommodative Fed next year.
(Peter Nurse contributed to this report.)
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