Dow closes 300 points lower Friday, but notches best week since December: Live updates
The Dow Jones Industrial Average slipped on Friday, but clinched its best week of the year after back-to-back record-setting sessions.
The Dow dipped 305.47 points, or 0.77%, to close at 39,475.90. The S&P 500 inched lower by 0.14% to end at 5,234.18. The Nasdaq Composite added 0.16% and closed at 16,428.82 for another record.
All three major averages notched healthy gains this week, with the S&P 500 rising about 2.3%. The Dow was up just shy of 2% for its best week since December. The Nasdaq is the outperformer of the three, jumping nearly 2.9%.
“It’s a digestion period after a really strong week,” said Truist’s co-chief investment officer Keith Lerner of Friday’s moves. “Our view is that the overall trend is still positive for the market, especially when you see this breakout of new highs, on track for your fifth consecutive month of gains.”
One reason for the market optimism stems from this week’s Federal Reserve meeting. The central bank left rates unchanged, and commentary from Fed Chair Jerome Powell reinforced that cuts are coming despite a recent bout of hot inflation readings that led some investors to fear a postponed easing timeline.
“That was enough for this market to move forward,” Lerner said.
FedEx rose more than 7% after posting adjusted earnings that beat analyst estimates, while Nike sank 6.9% on disappointing guidance and slowing China sales. Lululemon slid 15.8% on weak guidance and slowing growth in North America, posting its worst day since March 2020.
The major indexes closed at record levels on Thursday for a second day, and hit all-time intraday highs. Thursday was the fourth straight winning session for the three indexes, with the Dow finishing close to the 40,000 level.
Dow slides on Friday, but cruises to weekly gains
The Dow Jones Industrial Average ended Friday lower by 305.47 points, or 0.77%, to close at 39,475.90. The S&P 500 also closed the session with a modest decline of 0.14%, ending at 5,234.18. The Nasdaq Composite outperformed, with a gain of 0.16% for a closing record of 16,428.82.
All three major stock indexes capped the week with gains. S&P 500 was higher by 2.29%, while the 30-stock Dow closed up by 1.97%. The Nasdaq added 2.85%.
-Darla Mercado
Market may be getting ‘overexcited’ about three cuts, says Envestnet’s D’Auria
Markets cheered this week’s Federal Reserve decision to leave interested unchanged, and maintain expectations for three cuts this year despite a recent spate of hot inflation reports.
But the market may be getting ahead of itself, according to Envestnet’s Dana D’Auria.
“The market is getting a little overexcited,” said the co-chief investment officer. “I don’t interpret the comments to mean that we necessarily get that rate cut in June.”
Given the current data, D’Auria believes there’s a “pretty decent chance” that the central bank cuts fewer than three times this year, adding that she sees greater risks in cutting too soon.
“Powell is trying to thread the needle between not letting the market expect too much but also not disappointing the market,” she said. “Unless the data support a cut, I don’t necessarily think we will get one.”
— Samantha Subin
Semiconductor index heads for best quarter since 2001
The blowout run in semiconductor stocks is putting the VanEck Semiconductor ETF on pace for one of its best quarterly performances in more than two decades.
The fund is up about 30% since the start of the year, tracking for its best quarterly performance since its 41.6% gain in the fourth quarter of 2001.
Leading the pack is Nvidia. The AI darling is up another 90% this quarter after a 239% gain in 2023. It is also on track for its best quarterly performance since the fourth quarter of 2001.
The index is also headed for its fifth consecutive winning month and its longest winning streak since a six-month rally that ended in March 2021. It sits about 4% off of its all-time high.
Taiwan Semiconductor is another notable gainer, on pace for a 35% gain. Broadcom and Advanced Micro Devices have jumped more than 20%. Applied Materials is up about 30%.
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