New York, New York – Stocks in the US retreated from their recent all-time highs on Friday, influenced by concerns about the situation in Europe and the approval of Elon Musk’s pay package at Tesla. The Dow Jones Industrial Average decreased by approximately 0.3%, leading the declines, while the S&P 500 dropped by 0.2% and the Nasdaq Composite saw a decrease of about 0.1%.
Investors observed a decline in stock prices following consecutive record-setting closes for the S&P 500 and the Nasdaq. Despite the pullback, both indexes remained on track for weekly gains. A surprise easing in wholesale price pressures provided some relief to investors, particularly those who were anticipating two interest rate cuts this year.
The Federal Reserve’s decision to reduce its projected rate cuts for 2024 from three to one left the market uncertain and susceptible to fluctuations. Although technology stocks drove overall gains, questions lingered about the breadth of this year’s market rally, leading to uncertainties among investors. In contrast, Tesla’s shares declined nearly 2% after shareholders reapproved Elon Musk’s record-breaking pay package, despite opposition from some large investors.
European stock markets experienced a slump, with concerns arising about potential political outcomes, particularly in France’s upcoming snap election. In individual stock movements, Adobe’s shares surged by approximately 15% following a positive AI sales projection, showcasing the company’s growth potential.
Overall, the market saw a shift in sentiment, reflecting a mix of economic uncertainties and political risk factors, which contributed to the day’s stock market retreat in the US. Despite the setbacks, investors remained cautious and attentive to the evolving market conditions.