4:08pm: Afternoon struggles can't quash weekly gains
The Dow closed Friday down 107 points, 0.3%, at 34,301, the Nasdaq Composite slid 93 points, 0.7%, to 13,690 and the S&P 500 fell 16 points, 0.4%, to 4,410. The small-cap Russell 2000 index declined 18 points, 0.9%, to 1,872.
The benchmarks opened above water but trailed off over the course of the afternoon.
Despite snapping a six-session winning streak, the S&P 500 enjoyed its best week since March. It was the benchmark's fifth-consecutive positive week (the longest such streak since November 2021), compared to eight weeks for the Nasdaq (longest since 2019) and three weeks for the Dow.
The rally was driven in part by tech stocks, including Microsoft Corporation which saw its stock climb 6% this week.
12:05pm: S&P 500 on track for best week since March
US stocks were mixed in noon trading as the rally related to the Federal Reserve’s pause of interest rate hikes appears to be losing steam.
At midday, the Dow gained 6 points to 34,414, while the S&P 500 added 4 points at 4,430 and the tech-heavy Nasdaq slipped 22 points to 13,761.
“Wall Street remains upbeat that the AI wave won’t be going away anytime soon and that investors will prefer US stocks as we see diverging central bank policies worldwide,” Oanda senior market analyst Ed Moya said.
Notable movers included shares of Virgin Galactic Holdings Inc, which climbed 15% after the company announced that its first commercial space tourism flight has been scheduled for later this month.
9:35am: Stocks on track for weekly gains
US stocks started the day on a positive note set to close out the week strong ahead of the Juneteenth long weekend.
Just after the opening bell, the Nasdaq had added 64 points or 0.5% at 13,843 points, the S&P 500 was up 18 points or 0.4% at 4,444 points, and the Dow Jones had gained 89 points or 0.3% at 34,497 points.
FOREX.com market analyst Fiona Cincotta noted that global stocks were headed for their best week since March.
“The Dow Jones trades 1.6% higher this week, its third straight week of gains, while the Nasdaq is up nearly 4% this week, its eighth consecutive weekly rise,” she said.
“Traders have shrugged off hawkish comments from the Federal Reserve and are instead betting that the central bank will end its tightening cycle sooner rather than later after it paused interest rate hikes this week. Meanwhile, expectations are growing that the Chinese government will step in with further stimulus to boost spending, which is also helping risk appetite.”
7:45am: Focus shifts to next piece of economic data
US stocks are expected to start flat to higher in early trade on Friday as investors shift their focus from the Federal Reserve policy meeting earlier in the week to the next piece of economic data for clues to the next rate move.
In pre-market trading, futures for the Dow Jones Industrial Average (DJIA) were flat, while those for the S&P 500 added 0.1%, and contracts for the Nasdaq-100 futures rose 0.3%.
All three major indexes finished strongly higher on Thursday, marking the sixth straight day of wins for the S&P 500 and Nasdaq Composite, and the S&P 500′s longest winning streak since November 2021. The DJIA ended 428 points, or 1.3% higher at 34,408, while both the S&P 500 and Nasdaq Composite added 1.2%.
With just Friday’s session left, the three indexes are also on track for weekly gains, building on a recent rally across the market. The S&P 500 is on pace to notch its best weekly performance since March, up nearly 3%, while the Nasdaq Composite has gained almost 4% since the start of the week, making it poised for its eighth straight winning week — the tech-heavy index’s longest weekly streak since a 10-week period that ended in March 2019. The DJIA has gained a relatively modest 1.6% this week.
The moves higher came as investors bet interest rate hikes were coming to an end after the Federal Reserve announced it would not increase rates at its meeting this week, even though it said two more rate increases could still come later, so the path for data will be key.
The only data point due on Friday will be the preliminary University of Michigan consumer sentiment report for June.
Joshua Mahony, chief market analyst at Scope Markets commented: "Wall Street futures are pointing towards a flat start to the week’s final trading session, but the wider view remains one of abundant optimism given the Fed’s hawkish undertone at its latest policy-setting meeting.
"This is leading to some concerns that the market may be moving into bubble territory where valuations on some select stocks are simply now looking to be overblown, but for now it’s the bulls who are firmly in control."
He added: "Fundamentals are thin on the ground for the remainder of the day, although eyes will be on the Michigan Consumer Sentiment readings to see how much-weakening sentiment here is driving down inflation following the undershoots seen earlier in the week.
"Expectations are for a modest month-on-month improvement which would be welcomed, but anything that looks too soft here could reignite fears of the US economy facing a more pronounced slowdown."
On the corporate front, Virgin Galactic shares surged higher in extended trading Thursday after the company announced its first commercial space tourism flight is slated for the end of this month.
Adobe also rose after-hours after the technology company beat all Street estimates on top and bottom lines in its fiscal second quarter and issued upbeat expectations for current quarter and full-year performance.
Friday’s session will also likely be busy given the quarterly rebalancing of some indexes and expiration of some options expected to take place. This so-called 'quadruple witching' can result in a surge of market volatility and trading volume.
Friday also marks the final trading day before a long weekend, with the market closed Monday in observation of Juneteenth.