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S&P 500 pulls away from record high as Fed encouragement fades

Photo of smsmalex smsmalex2 hours ago
67 5 minutes read
S&P 500 pulls away from record high as Fed encouragement fades

U.S. stocks wobbled from record highs on Friday as rate-cut euphoria faded, with FedEx (FDX) earnings providing a reality check.

The S&P 500 Index (^GSPC) fell about 0.1% after the benchmark index closed at a record high. The Dow Jones Industrial Average (^DJI) edged higher after setting its own record closing high. Leading the decline, the tech-heavy Nasdaq Composite (^IXIC) fell 0.2%.

Stocks jumped Thursday as investors embraced Chairman Jerome Powell’s message that the Federal Reserve is cutting interest rates sharply to support the economy, not save it — a view reinforced by jobless claims data.

That lightning-fast recovery is now running out of steam, with risks to growth still weighing on growth. Wall Street continues to wonder whether the Fed has fallen behind schedule in its attempt to keep the economy on track for a “soft landing.” Traders are anticipating deeper cuts this year than policymakers’ “dot plots” predict, according to federal funds futures.

Learn more: What the Fed’s Rate Cut Means for Bank Accounts, CDs, Loans, and Credit Cards

Additionally, optimism about the Fed is fueling the risk of a bubble, according to a top strategist at Bank of America. Michael Hartnett said stocks are currently pricing in levels of monetary policy easing and earnings growth that are causing investors to chase gains.

FedEx reported a sharp drop in earnings after market close Thursday, missing Wall Street expectations. The delivery company, a bellwether for the economy, saw its shares fall as much as 14%.

Elsewhere, Nike (NKE) shares jumped after the sportswear maker named a new CEO as its sales come under pressure.

Live8 updates

  • S&P 500 pulls away from record high as Fed encouragement fades

    Dow Jones turns positive again as stocks hover near records

    The Dow Jones Industrial Average (^DJI) moved into green territory Friday afternoon, hovering near record highs.

    Major stocks opened slightly lower Friday morning after the S&P 500 (^GSPC) and the Dow hit all-time closing records.

    By 1 p.m. ET, stocks had pared some of their morning losses. However, the S&P 500 and the tech-heavy Nasdaq Composite (^IXIC) were still in the red.

  • S&P 500 pulls away from record high as Fed encouragement fades

    Apple iPhone 16 and iPhone 16 Pro review: Camera control and bigger screens, Apple Intelligence not ready yet

    Yahoo Finance’s Dan Howley reports:

    Apple’s (AAPL) iPhone 16 and iPhone 16 Pro lineups hit the market on September 20, and they bring a handful of updates that, if you’re using an older iPhone, are worth upgrading to. There’s a new camera button, improved camera performance, larger displays on the Pro models, and better battery life overall.

    I spent some time using both the iPhone 16, which starts at $799, and the iPhone 16 Pro, which starts at $999. If you’re coming from an older iPhone, you’ll appreciate the improvements in the new phones. But the biggest improvement in Apple’s new iPhones is the company’s Apple Intelligence platform.

    Read more here.

  • S&P 500 pulls away from record high as Fed encouragement fades

    Trump media company shares fall as lockup period expires

    Trump Media & Technology Group (DJT) shares fell to new lows on Friday after the company’s six-month lockup period expired.

    On Thursday, former President Donald Trump and other shareholders were allowed to sell their shares in the social media company for the first time since its initial public offering in March.

    Trump, who owns more than half of the company, recently said he would not sell his shares.

    “I have absolutely no intention of selling,” Mr. Trump told reporters at a news conference last week. “I love it. I use it to get my message out.”

    The stock has been volatile, often moving in tandem with any developments related to the Republican presidential candidate. On Friday, shares fell as much as 5%.

  • S&P 500 pulls away from record high as Fed encouragement fades

    Utilities Outperform While Rest of Market Slumps

    Utilities (XLU) rose 1.5% while the rest of the sectors were flat to down in Friday’s market action.

    Technology stocks (XLK) fell 0.9% after fueling a massive market rally in the previous session.

    On Friday, the S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) retreated from their all-time highs.

    Utilities outperformed on FridayUtilities outperformed on Friday

    Utilities outperformed on Friday

  • S&P 500 pulls away from record high as Fed encouragement fades

    Trump Continues to Criticize Fed Over Rate Cut: ‘It Was a Political Decision’

    Yahoo Finance’s Jennifer Schonberger reports:

    Republican presidential candidate Donald Trump has continued to criticize the Federal Reserve after a massive half-percentage point interest rate cut less than two months before the November election.

    “It’s really a political decision,” the former president said Thursday in an interview with Newsmax.

    Read more here.

  • S&P 500 pulls away from record high as Fed encouragement fades

    Constellation Energy Hits All-Time High With Nuclear Power Sale Deal to Microsoft

    Constellation Energy (CEG) stock hit all-time highs Friday after the company announced plans to restart a nuclear reactor at Three Mile Island (TMI) and sell the power to Microsoft (MSFT) for its data centers.

    Wall Street had expected Constellation to sign a deal with one of the big tech players this year as they seek more power to run their technology infrastructure amid a boom in artificial intelligence.

    Constellation purchased the TMI Unit 1 reactor, located in Pennsylvania, in 1999. It is located next to Unit 2, a reactor that was shut down after suffering a partial meltdown in 1979.

    “TMI Unit 1 is a fully independent facility and its long-term operation has not been affected by the Unit 2 accident,” Constellation said in its announcement Friday.

    Before Unit 1 was shut down for economic reasons in 2019, the plant had a generating capacity of 837 megawatts, enough to power more than 800,000 average homes, the company said.

    Constellation Energy rose 15% on Friday. The stock is up more than 100% year to date.

  • S&P 500 pulls away from record high as Fed encouragement fades

    Nike shares jump 7% after CEO replacement

    Shares of Nike (NKE) jumped Friday after the sneaker and athletic apparel giant announced that CEO John Donahoe plans to retire. He will be replaced by Elliott Hill, the company’s former president of consumer products and marketplace, effective Oct. 14.

    Wall Street analysts welcomed the return of Hill, who left Nike in 2020. Shares of the company were up more than 7% in early trading.

    As Yahoo Finance’s Brooke DiPalma reports, the leadership change comes as Nike’s board — which includes founder Phil Knight, former longtime CEO Mark Parker and Apple CEO Tim Cook — sees fit to focus on improving products and rebuilding relationships Donahoe cast aside, such as the one with Foot Locker (FL).

    Read more here.

  • S&P 500 pulls away from record high as Fed encouragement fades

    Stocks retreat from all-time highs as Fed rate hike fades

    Stocks fell slightly in early trading Friday, pulling away from record highs in the S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI).

    The tech-heavy Nasdaq Composite Index (^IXIC) also fell after a monstrous rally in the previous session on the heels of a massive rate cut by the Federal Reserve.

    Market euphoria faded on Friday after delivery giant FedEx (FDX), a key indicator of the US economy, published disappointing quarterly results on Thursday evening.

    FedEx shares fell in early trading.

Photo of smsmalex smsmalex2 hours ago
67 5 minutes read
Photo of smsmalex

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