Wall Street closed its record-setting week on a quieter note, with the major indexes experiencing mixed results. The S&P 500 slipped by 0.2%, while the Nasdaq composite dropped 0.4%. Meanwhile, the Dow Jones Industrial Average managed to climb 38 points (0.1%) to hit an all-time high.
FedEx Slumps on Disappointing Earnings
FedEx led the market’s decline, with shares plummeting 15.2%. The company reported that its profit and revenue for the latest quarter were below analysts’ expectations. U.S. customers opted for fewer priority shipping services, and the company faced rising costs, including higher wages for workers. As a result, FedEx reduced its revenue growth forecast for the fiscal year.
Nike Boosts Market with CEO Announcement
Nike provided a counterbalance to the market’s losses, surging 6.8% after announcing Elliott Hill as its new CEO. Hill, a seasoned leader with over 30 years at Nike, is expected to bring stability and growth to the brand.
Also Read This…
- السوق المالية السعودية توافق على أنشطة صناعة السوق لمورغان ستانلي السعودية
- زيادة عدد صيدليات النهدي في المملكة العربية السعودية
- بروزوفيتش يغيب عن تدريبات النصر قبل مواجهة استقلال طهران
- دعاء فجر اليوم العاشر من رمضان.. احرص عليه لتُفتح لك المغاليق
- تحليل هبوط أسهم تسلا بنسبة 45% خلال ثلاثة أشهر: الأسباب والتداعيات
Trump Media Takes a Hit
Trump Media and Technology Group (TMTG) saw its stock fall 7.8%, coinciding with former President Donald Trump’s newfound ability to sell his shares. Trump, who owns more than half of the $2.7 billion company, had been restricted from selling due to a lock-up agreement that has now expired. Despite this, Trump indicated he’s in no rush to sell. TMTG’s stock has been volatile, dropping from over $60 in March to below $14 today.
Lennar Sees Mixed Results Amidst a Shifting Market
Homebuilder Lennar posted mixed earnings, leading to a 5.3% decline in its stock. While the company exceeded profit expectations for the quarter, it reported shrinking margins, expecting the trend to persist. However, with the Federal Reserve recently cutting interest rates, conditions may improve for homebuilders as mortgage rates become more affordable.
Federal Reserve Takes Action on Interest Rates
Earlier this week, the Federal Reserve made its first rate cut in over four years. This move marks a shift from its previous policy of maintaining rates at a two-decade high to combat inflation. Now, with inflation subsiding, the Fed is focusing on maintaining a strong job market and avoiding a recession.
Concerns Over Slowing Hiring and Recession Risks
Despite the Fed’s rate cut, hiring has begun to slow, raising concerns that the central bank may have acted too late. Some critics argue that the stock market is overheating, with investors overly optimistic about the Fed’s ability to control inflation without triggering a recession. Barry Bannister, chief equity strategist at Stifel, has warned of a potential sharp drop in the S&P 500 by year-end, pointing to inflated stock prices relative to company profits.
Looking Ahead: Key Economic Data Next Week
Although no significant economic data was released on Friday, next week will bring important updates. Reports on U.S. business activity, consumer spending, and a final revision on economic growth for the spring are expected to provide further insights into the economy’s trajectory.
Market Wrap-Up
By the end of the week, the S&P 500 closed at 5,702.55, down 11.09 points. The Dow rose 38.17 points to 42,063.36, while the Nasdaq fell by 65.66 points to 17,948.32. In the bond market, the yield on the 10-year Treasury edged up to 3.74% from 3.72%.
Global Markets See Mixed Results
Global markets were mixed on Friday. While European indexes slumped, Asian markets saw gains. Tokyo’s Nikkei 225 rose 1.5%, bolstered by the Bank of Japan’s decision to keep interest rates steady.
Data Source: apnews