- US stocks on track for weekly gains
- Fed bolsters prospects of rate cuts
- Lululemon, Nike plummet on outlook
4:20pm: Mixed closing for US stocks
Stocks finished the week with mixed results but the Nasdaq reached a new record high, driven by optimism about a potential reversal in interest rate hikes.
The tech-dominated exchanged rose to a high of 16,466 points in intraday trading before finishing the week at 16,429 points for a 0.2% gain.
While the Nasdaq rose, the Dow Jones fell by approximately 0.7% at 39,476, and the S&P 500 slipped by 0.1% to 5,234.
Despite the mixed day, all three indices secured solid weekly gains, boosted by the Federal Reserve's reassurance regarding rate cuts and optimism that borrowing costs may have peaked.
Meanwhile, FedEx shares surged by about 7% after reporting improved operating margins, while Nike shares declined by around 7% due to disappointing sales guidance in its mixed results.
12:07pm: Dow Jones struggles
US stocks were mixed at midday but remained on track for notable weekly gains after all three major indexes notched record closes on Thursday.
The Nasdaq traded modestly higher, up 0.1% at 16,413 points after starting the day in the red. The Dow Jones was down 0.5% at 39,594 points and the S&P 500 slipped 0.1% at 5,235 points.
Athletic apparel brands Lululemon Athletica Inc (NASDAQ:LULU) and Nike Inc (NYSE:NKE, ETR:NKE) saw significant losses, down 16.6% and 7.8% respectively following the release of their earnings reports.
Both companies saw a pullback on disappointing guidance despite better-than-expected quarterly reports.
Meanwhile, the Brent crude oil price is on track for its third day of losses, with gold and silver prices also trading lower.
"Oil and natural gas prices continue to slide as the U.S. government has pressed Ukraine to halt drone strikes on Russian energy facilities, fearing it could provoke retaliation and drive up global oil prices,” IG senior market analyst Axel Rudolph said.
“Gold and silver prices have stalled below this week's highs, with gold making a record high at $2,222.915 per troy ounce on Thursday."
9:38am: Stocks opens lower
US stocks have opened lower after appearing to lose some of their momentum from the last couple of days.
The Dow Jones was down 9 points at 39,771, while the Nasdaq dropped 18 points at 16,384.
The S&P 500 kept flat at 5,241.
On Thursday, the major indexes closed at record levels, having hit all-time intraday highs.
Some of the equities which made the biggest moves at the start of trading include Lululemon and Nike, down 13.5% and 7% respectively, after the two warned of a weaker-than-anticipated sports clothing industry in the near-term.
Other movers included Reddit, down 2%, after a stellar debut and Best Buy, up 3%, after JP Morgan upgraded it from neutral to overweight.
Much of this week's strong performance has been driven by the dovish outlook provided by the Federal Reserve, which indicated there could be three interest rate cuts in 2024, the first of which in summer.
8:37am: Wall Street to open lower after strong week
Wall Street is set to open lower on Friday, but all three indexes are due to close the week out higher after two consecutive days of record-setting gains on Wednesday and Thursday.
The Dow Jones is positioned to open flat at 40,192, while the S&P 500 and Nasdaq are set to begin trading 7 and 51 points lower respectively.
FedEx shares are trading around 11% higher in the premarket after the postal service reported a third-quarter profit beat and promised investors a US$5 billion share buyback.
Falling the other way was Lululemon, down around 13% in premarket trading, after its forward-looking estimates came in lower than Wall Street had been expecting.
Nike also slid around 6% after it warned investors that both near-term and long-term prospects were downbeat.
The company projects slight revenue growth in the near term and has not specified the expected growth rate for fiscal 2025, against analysts' predictions of a 5.6% increase.
Meanwhile, newly listed Reddit has reversed marginally from its 48% gains on its debut yesterday, with shares down 2.5% in premarket trading.