On Friday, U.S. stocks saw a slight decline as the technology-led rally that had been dominating markets for the past week showed signs of weakening. The S&P 500 index and the Nasdaq Composite both experienced losses, with the S&P dropping 0.1% and the Nasdaq falling 0.2%. In contrast, the Dow Jones Industrial Average saw a modest gain of about 0.2%.
The recent dip in the S&P 500 and Nasdaq was notable as it deviated from the upward trend seen in the previous weeks. The S&P had reached a new milestone by briefly surpassing 5,500 points on Thursday, while the Nasdaq had been on a streak of seven consecutive record closes before the decline. The tech sector, which had been a key driver of the recent rally, saw losses with notable companies like Nvidia, Broadcom, Super Micro Computer, and Qualcomm all facing declines in morning trading.
Investors are closely monitoring the U.S. economy and the trajectory of interest rates. James Bullard, former St. Louis Fed President and an inflation hawk, suggested that the recent Consumer Price Index reading opens the possibility of a rate cut in September. The majority of traders are anticipating rate cuts to start in September, according to the CME FedWatch Tool.
In addition to these factors, the S&P Global is set to release an initial reading on U.S. economic activity on Friday morning. This data will provide further insights into the state of the economy and could impact investor sentiment.
Overall, the stock market on Friday witnessed a cooling of the AI-powered rally that had driven gains in recent weeks. While the Dow Jones Industrial Average managed to edge up slightly, the broader market saw losses, particularly in the tech sector. Investors are navigating uncertainties around the economy, interest rates, and specific market drivers like chip stocks. The coming days will likely bring further fluctuations as market participants digest new information and assess the market landscape.
Article Source
https://finance.yahoo.com/news/live/stock-market-today-stocks-wobble-as-nvidia-ai-rally-shows-signs-of-fatigue-133059888.html