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NEW YORK (AP) — U.S. stocks closed quietly at near-record levels Friday, marking their highest level so far this year.
The S&P 500 fell 7.35 points (0.1%) from its all-time high to close at 5,234.18. The Dow Jones Industrial Average fell $305.47, or 0.8%, to $39,475.90, and the Nasdaq Composite Index rose $26.98, or 0.2%, to $16,428.82, a record high.
Nike dragged the market down by 6.9%. Although the company reported better results than analysts expected in its latest quarter, the company is in the midst of some fundamental changes to inject more newness into its shoes and other products to make them more popular. .
Lululemon Athletica’s stock price also fell despite the company reporting better-than-expected profits. The company posted revenue and profit estimates for the next fiscal year that fell 15.8% below analysts’ expectations.
Reddit fell 8.8% to give back some of the big gains from its dynamic debut on the US stock market. An eclectic bazaar of online communities offered the company’s shares at an opening price. $34 per share It rose 48.4% in its first day of trading on Thursday.
The market was supported by FedEx, which rose 7.4% after reporting better-than-expected profits despite a “challenging demand environment.”
Some of the market’s wildest moves were centered around Digital World Acquisition Corporation. approved the merger Partnered with the company that operates former President Donald Trump’s Truth Social platform. The company’s stock price fell 13.7% after an early rise of 12%.
Stocks have seen impressive gains this year as Mr. Trump advances toward winning the Republican presidential nomination. However, the stock price began to decline shortly after Digital World’s shareholders approved the merger, which will see Trump Media & Technology Group’s stock trade under the symbol DJT, replacing Digital World’s DWAC.
Critics say Digital World’s stock price is much higher than the company’s fundamentals suggest. Truth Social continues to lose money.
In the bond market, US Treasury yields have fallen further this week. The yield on the 10-year U.S. Treasury note fell to 4.20% from 4.27% late Thursday.
Early this week, federal reserve system As long as inflation continues to cool, the central bank indicated there is still a chance it will cut interest rates three times this year. That eased concerns on Wall Street that some higher-than-expected inflation reports this year would force rate cuts off the table.
The Fed’s key interest rate is at its highest level since 2001, and Wall Street expects interest rate cuts to begin in June. Such cuts would reduce pressure on the economy and financial system.
David Lefkowitz, head of U.S. equities at UBS Global Wealth Management, said continued expectations that the Fed would change interest rates in the coming days, along with a surge in investment in artificial intelligence and other market drivers, are pushing stocks higher. There is a high possibility that support will be provided.
But he expects the S&P 500 to end the year close to current levels, having already gained nearly 10% by 2024.
Overseas, stock markets fell 2.2% in Hong Kong and 0.9% in Shanghai, but indexes showed modest movements in mixed trading in other Asian and European markets.
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