Stock market today: Wall Street edges back from records but remains on track for a big winning week
NEW YORK (AP) — Wall Street is easing off its record highs Friday, but U.S. stocks are still heading toward the close of their best week for 2024 so far.
The S&P 500 was 0.2% lower in midday trading after setting an all-time high in each of the last three days. The Dow Jones Industrial Average was down 180 points, or 0.5%, as of 11 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.
Nike was dragging on the market after falling 8.3%. It reported stronger results for the latest quarter than analysts expected, but it’s in the midst of several fundamental changes to inject more newness into its shoes and other products to make them more popular.
Shares of Lululemon Athletica also dropped despite a better-than-expected profit report. The athletic apparel company gave forecasts for revenue and profit over the upcoming fiscal year that fell short of analysts’ expectations, and it sank 18.7%.
Reddit cooled and fell 5% to give back some of the big gain from its dynamic debut on the U.S. stock market. The eclectic bazaar of online communities offered its stock at an initial price of $34 a share and gained 48.4% on Thursday.
Helping to support the market was FedEx, which climbed 7.9% after reporting stronger profit than expected despite what it called “a difficult demand environment.”
Some of the market’s wilder action was centered on Digital World Acquisition Corp. The company’s shareholders on Friday approved a merger with the company behind former President Donald Trump’s Truth Social platform.
Its stock had been up as much as 12% early in the day, adding to what’s been a spectacular run for the stock as Trump has marched toward the Republican nomination for president. But it began falling shortly after Digital World shareholders approved the merger, which would see Trump Media & Technology Group shares trade under the symbol DJT and replace Digital World’s DWAC. It was recently down 10.9%.
Critics have said Digital World’s stock is much, much higher than the businesses’ fundamentals suggest, and Truth Social has been losing money.
In the bond market, Treasury yields sank to pull back further for the week. The yield on the 10-year Treasury fell to 4.22% from 4.27% late Thursday.
Earlier this week, the Federal Reserve indicated that it still may deliver three cuts to interest rates this year, as long as inflation keeps cooling. That calmed worries on Wall Street that several hotter-than-expected inflation reports this year could force it to take rate cuts off the table.
The Federal Reserve has already raised its main interest rate to its highest level since 2001, and Wall Street is hoping for cuts to begin in June. Such reductions would relieve pressure on the economy and financial system.
In stock markets abroad, stocks tumbled 2.2% in Hong Kong and 0.9% in Shanghai but moved more modestly elsewhere in mixed trading across the rest of Asia and Europe.