The S&P 500 and Nasdaq fell Friday, on track to break their five-week streak of gains, as investors digested an inflation report and weighed when the Federal Reserve might begin cutting interest rates. interest.
The technology sector led the declines among S&P 500 sectors, falling 1.6%, followed by the consumer discretionary sector, which fell 1%.
The semiconductor index fell 2.6%, while Dell shares fell 18% after it forecast quarterly profit below market estimates and reported that higher costs to build servers that meet to heavy artificial intelligence workloads would reduce its annual margins.
The U.S. personal consumption expenditures (PCE) price index rose 0.3% last month, according to the Commerce Department’s Bureau of Economic Analysis, matching the month’s unrevised increase Of March.
Consumer spending slowed more than expected, the report added.
“People were happy that the report wasn’t very surprising, but beneath the surface the consumer continues to show a little bit of tension,” said Carol Schleif, chief investment officer at BMO Family Office in Minneapolis.
“That’s evident in the market’s sector performance. … The consumer discretionary sector is at the bottom of the list of best performing sectors today.”
Traders in futures tied to the Fed’s key rate increased bets on roughly even chances the central bank will begin cutting rates in September and increased the odds of a second rate cut in December to approximately the same probability.
The Dow Jones Industrial Average rose 265.19 points, or 0.70 percent, to 38,376.67 points. The S&P 500 lost 16.37 points, or 0.31%, to 5,219.11 and the Nasdaq Composite fell 210.73 points, or 1.26%, to 16,526.35.
Technology stocks and chips, which have driven Wall Street’s recent rally, fell this week as rising Treasury yields put pressure on riskier assets.
Among rising stocks, Zscaler jumped 7.1% after the security solutions provider reported fourth-quarter results that beat estimates.
Gap jumped 28.5% after the clothing maker raised its annual sales forecast and its first-quarter results beat market expectations, in another sign that its turnaround strategy is starting to pay off. fruits.
Trump Media & Technology Group fell 5.3% after a New York jury found former President Donald Trump guilty of falsifying documents to conceal a hush-money payment to a porn star before the 2016 election .
Advancing stocks outnumbered declining stocks by a ratio of 2.03 to 1 on the NYSE and 1.24 to 1 on the Nasdaq.
The S&P recorded eight new 52-week highs and six new lows, while the Nasdaq recorded
4
8
new highs and 82 new lows.
