US Equity Indexes Closed Mixed This Week as AI Trade Weakens, Rate-Hold Bets Boost Treasury Yields

BY MT Newswires | TREASURY | 11/14/25 05:04 PM EST

05:04 PM EST, 11/14/2025 (MT Newswires) -- US equity indexes closed mixed this week as stretched valuations and plunging interest-rate cut bets amid lingering inflationary concerns hurt the so-called AI trade.

* The S&P 500 closed at 6,734.11 on Friday versus 6,728.80 a week ago. The Nasdaq Composite stood at 22,900.59 compared with 23,004.54 a week earlier. The Dow Jones Industrial Average ended at 47,147.48, versus 46,987.10 at the end of last week.

* Energy, basic materials, and healthcare led the sector charts, while consumer cyclicals led decliners.

* Four Magnificent-7 stocks fell this week, led by Tesla (TSLA). Among the stocks with a market capitalization of more than $200 billion, the worst performers included Palantir Technologies (PLTR) . The company's Q3 beat-and-raise announced on Nov. 3 failed to outweigh concerns surrounding its price-to-earnings ratio, according to FactSet, of roughly 400 times.

* The longest federal government shutdown in the history of the US ended this week, but its impact is continuing to be felt. The October inflation data from the Bureau of Labor Statistics, scheduled for release on Thursday, was delayed.

* According to the Federal Reserve Bank of Cleveland's inflation nowcast as of Thursday, the core consumer price index is expected to have grown by an estimated 0.3% in October. That compares with the BLS-reported 0.2% for September.

* The probability of a 25-basis-point cut in rates from the Federal Reserve in December dropped to 52% by Thursday afternoon, from 96% a month ago, according to the CME Group's FedWatch Tool. The remaining likelihood is for the Fed to leave its target rate for fed funds unchanged in the 3.45% to 4% range.

* Kansas City Fed President Jeffrey Schmid, San Francisco Fed President Mary Daly, Atlanta Fed President Raphael Bostic, and Boston Fed President Susan Collins have all resisted the idea of the third consecutive rate cut next month.

* The 10-year US Treasury yield traded at 4.15% late Friday, among the highest levels seen this month.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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