U.S. stocks are on track for a quiet end to the week on Friday, with the S&P 500 down 0.2% and the Dow Jones Industrial Average up 0.1%. The Nasdaq composite is down 0.3%, led by a 2.9% drop in NVIDIA stocks. Despite its recent decline, NVIDIA’s shares have skyrocketed over 1,000% since October 2022. Other notable stock movements include Sarepta Therapeutics rising 35.3%, CarMax increasing by 2%, and Smith & Wesson Brands falling 12.6%.
In the bond market, U.S. Treasury yields initially fell on news of weak business activity in eurozone countries. However, yields recovered after a report indicated that U.S. business activity was stronger than expected, with production growth hitting a 26-month high. This growth occurred without a significant increase in inflation pressure, aligning with the Federal Reserve’s 2% target.
There is optimism among traders that the Federal Reserve can navigate the delicate balance of slowing down the economy to reduce inflation without causing a recession. Many traders are predicting at least two interest rate cuts later this year. Federal Reserve officials themselves have forecasted one or two cuts in 2024 to their main interest rate, which is currently at its highest level in over two decades.
In foreign markets, many Asian indices also experienced declines, with the Hang Seng in Hong Kong falling 1.7% and South Korea’s Kospi dropping 0.8%. Overall, the global market landscape remains uncertain as investors and analysts closely monitor economic indicators and central bank policies.
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