- Nasdaq ends higher, S&P, Dow below par
- Adobe rallies 15% on earnings beat
- EU political uncertainty grows
4.10pm: Nasdaq ekes out a win
The Nasdaq reversed course by the close Friday to eke out a winning session for its fifth straight record close.
As of 4pm ET, the Nasdaq had added 0.2% to finish at 17,689 points.
Other indices weren’t so lucky: the Dow Jones declined 0.2% at 13,589, while the S&P 500 ended flat at 5,431.
Both the S&P 500 and Nasdaq notched strong weekly gains of approximately 1.5% and over 3%, respectively, buoyed by robust performances from tech stocks.
Investor sentiment was bolstered by unexpectedly subdued wholesale price inflation, reinforcing expectations of potential interest rate cuts. Despite the Federal Reserve reducing its projected rate cuts for 2024, uncertainty lingered, particularly regarding the breadth of the market rally this year.
Tech giants like Apple and Tesla remained in focus, with Tesla's shareholders approving Elon Musk's controversial pay package amidst broader market volatility influenced by political uncertainties in Europe and upcoming economic data releases in the US.
12.10pm: Tech-led gains fizzle
US stocks had retreated from record highs by midday Friday as expectations dwindled for more than one rate cut in 2024.
At noon, the Dow Jones was down 0.3%, leading the declines, while the S&P 500 and Nasdaq Composite slipped 0.2% and 0.1% respectively.
Despite earlier gains in the week driven by strong tech performances, concerns over European political instability and mixed signals from the Federal Reserve regarding interest rate cuts contributed to market caution.
Gold prices were on the rise however, hovering around the $2,330 mark but still within a narrow range following the release of the US Producer Price Index (PPI) data, which provided further evidence of easing inflation.
The Consumer Price Index (CPI) data also suggested a softening in inflation figures, according to Quasar Elizundia, research strategist at Pepperstone.
“These developments have maintained the anticipation of a potential Federal Reserve rate cut in September,” Elizundia commented.
“Despite earlier data suggesting lower-than-expected inflation, the Federal Reserve has tempered any immediate expectations for rate cuts. Moving forward, the markets will be closely monitoring comments from Fed officials starting today and into the next week for further direction.”
Meanwhile, Adobe shares moved over 14% higher following optimistic AI sales projections.
9.41am: US stocks slide at the open
Wall Street stocks have tumbled at the open, with all three of the main indexes dropping by around 0.4%.
The Dow Jones slipped 163 points to 38,483, while the Nasdaq dropped 51 points to 17,620.
Meanwhile, the S&P 500 fell 18 points to 2,344.
Some of the companies making the biggest moves were Adobe, up around 15%, after it posted better-than-expected earnings and increased its full-year guidance, with the outperformance driven by its investment in artificial intelligence.
High-end retailer RH (NYSE:RH) (RH (NYSE:RH)) fell around 15% after suffering a larger loss in the first quarter than analysts had predicted.
Hasbro, the owner of Monopoly and other board games, started the day close to 4% higher after Bank of America brokers upgraded the stock from 'neutral' to 'buy', pointing to its digital gaming strategy as a driving force for improved earnings in the next few years.
8.33am: Wall Street to fall at open
US stocks are on course to slide backwards from Thursday's close which saw the S&P 500 and Nasdaq finish at another record high.
All three lead indexes are set to open down, with the Dow Jones forecast to drop 225 points, the Nasdaq predicted to shed 22 points and the S&P 500 to fall by 18 points.
Political uncertainty in Europe, and in particular France, is appearing to hurt markets across the globe, despite the prospects of interest rate cuts getting rosier.
“Monetary policy is easing on a net basis globally, but the process isn’t going to happen rapidly enough to offset rising earnings headwinds tied to an environment of cooling nominal growth,” Adam Crisafulli of Vital Knowledge said.
On Thursday, the S&P 500 was able to post its fourth consecutive close at a record high, while the Nasdaq has also been breaking its records this week.