The S&P 500 (flat), Nasdaq Composite (+0.1%), and Dow Jones Industrial Average (-0.2%) closed within 0.2% of their prior closing levels while the Russell 2000 underperformed, dropping 0.6%. The S&P 500 and Nasdaq Composite initially moved higher, driven by strong earnings and guidance from Broadcom (AVGO 224.80, +44.14, +24.4%) that buoyed sentiment in the semiconductor sector.

Rising market rates kept buying efforts in check in the rest of the equity market. The 10-yr yield jumped eight basis points to 4.40% and the 2-yr yield settled five basis points higher at 4.24% ahead of next week's expected rate cut. The 10-yr yield is 25 basis points higher than last Friday and the 2-yr yield is 14 basis points higher for the week.

This movement followed disappointing inflation data, including weaker-than-expected November CPI and PPI reports, along with signs of softening in the labor market.

While the semiconductor sector remained a bright spot amid an otherwise sluggish session, some key chipmakers, including NVIDIA (NVDA 134.25, -3.09, -2.8%), reversed earlier gains. Shares initially rallied 1.6%, but NVIDIA closed with sizable decline. The PHLX Semiconductor Index (SOX) still logged a 3.4% gain.

In the energy sector, WTI crude oil futures rose 1.7% to $71.29 per barrel after the International Energy Agency (IEA) forecasted an acceleration in global oil demand growth, from 840,000 barrels per day in 2024 to 1.1 million barrels per day in 2025. Oil prices have struggled to maintain levels above $70 per barrel since September.

• Nasdaq Composite: +32.7% YTD
• S&P 500: +26.9% YTD
• S&P Midcap 400: +17.8% YTD
• Russell 2000: +15.8% YTD
• Dow Jones Industrial Average: +16.3% YTD

Reviewing today's economic data:

• November Export Prices 0.0%; Prior was revised to 1.0% from 0.8%
• November Export Prices ex-ag. 0.1%; Prior was revised to 0.8% from 0.6%
• November Import Prices 0.1%; Prior was revised to 0.1% from 0.3%
• November Import Prices ex-oil 0.0%; Prior 0.2%

Looking ahead, Monday's economic calendar features: December Empire State Manufacturing Survey (prior 31.2) at 8:30 ET; flash December S&P Global U.S. Manufacturing PMI (prior 49.7) and flash December S&P Global U.S. Services PMI (prior 56.1) at 9:45 ET