By Stan Choe
Publication Date: 2025-12-14 18:21:00
Friday’s declines in AI superstars continued their jagged return to earth after previously being the main engine driving Wall Street higher. Other stocks that once struggled with uncertainty about the strength of the U.S. economy and what the Federal Reserve will do about interest rates have since performed better.
Shares of the Dow Jones Industrial Average, which relies significantly less on technology, rose 1 percent last week. That’s much better than the Nasdaq composite’s 1.6 percent decline.
Despite the rise in yields on Friday, investors were more optimistic about interest rates. The Fed cut its key interest rate for the third time this year earlier this week and suggested another cut could be on the way in 2026.
Wall Street loves lower interest rates because they can stimulate the economy and drive up the price of investments, even though they may worsen inflation.
Fed Chairman Jerome Powell hinted on Wednesday that interest rates may rise…
