U.S. stocks traded in a muted fashion Friday, still on course for strong weekly gains after expectations of interest rate cuts by the Federal Reserve.
By 09:35 ET (13:35 GMT), the Dow Jones Industrial Average was down 8 points, or 0.1%, S&P 500 traded largely flat and Nasdaq Composite dropped 15 points, or 0.1%.
All three benchmark indices are on track for weekly gains of over 2%, after a series on record closing highs.
Fed rate cut hopes remain in play
Risk appetite remained upbeat after the Fed kept interest rates steady and stuck to its projections for at least three rate cuts this year, despite recent stickiness in inflation.
Comments from Fed Chair Jerome Powell, that inflation remained on a path towards the Fed’s 2% annual target, also ramped up expectations that the central bank will begin cutting rates by as soon as June.
This notion saw investors pile into risk-heavy assets, with equities benefiting the mos, posting a series of record closing highs
Traders now see a 74% chance of the first rate cut hitting in June, from 56% at the start of this week, according to the CME’s FedWatch Tool.
Investors will be closely monitoring commentary from a host of central bankers expected later in the day, including Fed Chair Jerome Powell, for further cues on the central bank’s monetary policy trajectory.
Fedex soars on earnings, buyback
In the corporate sector, FedEx (NYSE:FDX) surged over 8% as the delivery and logistics firm clocked stronger-than-expected earnings, and also approved a $5 billion share buyback.
Nike (NYSE:NKE) sank over 8% after the sportswear retailer issued a warning of a revenue dip, while peer Lululemon Athletica (NASDAQ:LULU) slid 14% on weak annual revenue guidance.
Tech boosted by AI cheer
The tech sector will remain in focus Friday, with Nvidia (NASDAQ:NVDA) still in the spotlight after it said it planned to ship its new AI chips later in 2024.
Micron Technology (NASDAQ:MU) stabilized after surging on Thursday as it reported an unexpected profit in the December quarter, and also forecast strong revenues on AI-fueled demand.
Apple (NASDAQ:AAPL) will remain in the spotlight after the Department of Justice sued the firm over antitrust violations. .
Crude on course for weekly gains
Oil prices edged higher Friday, on track for weekly gains on the prospect of tighter global supplies and improving demand.
By 09:35 ET, the U.S. crude futures traded 0.3% higher at $81.21 a barrel, while the Brent contract climbed 0.2% to $85.92 per barrel.
The two benchmarks fell early Friday following reports of a United Nations draft resolution for an immediate ceasefire in Gaza, but the resolution failed to pass through the UN .
A ceasefire would have represented a significant de-escalation in the Israel-Hamas conflict, and could potentially clear some uncertainty over supply disruptions in the region – particularly from Houthi attacks along shipping routes in the Red Sea.
(Ambar Warrick contributed to this article.)
https://www.investing.com/news/stock-market-news/us-stock-futures-edge-higher-as-wall-st-clocks-new-highs-on-fed-hopes-3349148
