Wall Street’s main indexes were largely flat in early trading on Friday as investors took a breather from the week’s rally driven by growing expectations of U.S. interest-rate cuts this year.
The S&P 500 and Nasdaq were on course for a fourth straight week of gains, while the blue-chip Dow was on track for its fifth weekly advance, supported by strong quarterly results and slowing inflation data that has bolstered the case for rate cuts from the Federal Reserve.
All three main indexes touched record highs on Thursday and the Dow briefly crossed the 40,000 milestone, before reversing gains and closing in the red.
“(Equities) are just trying to sort of digest the past week’s economic data,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.
“People are now looking at the next catalyst. Most likely it’s going to be whether or not the Fed actually cuts. So you got PCE (personal consumption expenditures) coming up, and if that’s below expectations then probably see the market continue to trend higher.”
Investors will parse comments from Fed officials Christopher Waller and Mary Daly, expected to speak during the day, for further cues on the central bank’s monetary policy path.
Wall St edges up after ‘mixed’ PPI data
Traders currently see a 68% chance of the first rate cut in September, according to the CME FedWatch Tool.
Of the 11 S&P 500 sectors, utilities underperformed other sectors with a 0.3% fall, while energy shares led gains, up 0.3%
At 09:40 a.m. ET, the Dow Jones Industrial Average rose 0.10 points to 39,869.48, the S&P 500 gained 1.27 points, or 0.02%, to 5,298.37 and the Nasdaq Composite gained 10.58 points, or 0.06%, to 16,708.90.
Advanced Micro Devices gained 3.4% after Microsoft said it plans to offer its cloud computing customers a platform of AMD artificial intelligence chips that will compete with components made by Nvidia.
Reddit rose 13% on partnering with OpenAI to bring its content to ChatGPT.
American Dollar Exchange Rate