New York City, U.S. – Stocks faced a slight decline on Friday, despite the major averages gearing up for a successful week as the Dow Jones Industrial Average was on track for its best week of the year. The Dow Jones Industrial Average fell by 108 points, hovering near the 40,000 mark, while the S&P 500 and the Nasdaq Composite remained relatively unchanged.
Throughout the week, all three major averages have shown impressive gains, with the S&P 500 expected to rise by 2.4% and the Nasdaq by 2.6%. Leading the pack is the Dow, which has surged 2.7% by Thursday’s close and is set for its most prosperous week since December.
Investors witnessed FedEx’s stocks soar by over 8% following better-than-expected earnings, while Nike shares plummeted by 8% due to disappointing guidance and sluggish sales in China. Lululemon also faced a setback, slipping by 18% on weak guidance and slow growth in North America, marking its worst day since March 2020.
Thursday saw the major indexes reach record levels for the second consecutive day, hitting all-time highs in intraday trading. It was the fourth consecutive winning session for the three indexes.
Market optimism has been partly attributed to the Federal Open Market Committee’s anticipation of three rate cuts this year, even after recent reports of heightened inflation. Art Hogan, chief market strategist at B. Riley Wealth, suggested that investors are aligning their expectations more closely with the Federal Reserve’s stance.
Hogan commented, “You get a couple of inflation data points that are a touch hotter, and I think realistically the Street’s thought process has become much more rational and lines up well with where the Fed is right now.” Overall, the market’s sentiment seems to be stabilizing in response to recent economic data and the Fed’s actions.