Stocks lost momentum and turned downward during afternoon trading on Friday, as investors pulled back after a powerful rally led by big tech names. The February jobs report also showed an uptick in the unemployment rate, bolstering investor confidence that the Federal Reserve will cut rates following its June meeting.
The S&P 500 (^GSPC) trended near the flatline after logging another record close on Thursday, while the Dow Jones Industrial Average (^DJI) increased by close to 0.3%. The tech-heavy Nasdaq Composite (^IXIC) lost 0.3% after a sharp gain the previous day.
Friday’s non-farm payrolls report showed the US economy added 275,000 jobs in February, surpassing Wall Street expectations. However, the unemployment rate ticked up to 3.9%, its first increase in four months. Futures on the three major averages were trading in red figures ahead of the jobs data.
The market received a boost this week as Chair Jerome Powell indicated that the Federal Reserve is nearing confidence that inflation is in the right place for the central bank to start bringing down borrowing costs.
In other global news, policymakers from the European Central Bank are supporting a rate cut before their summer break as inflation falls faster than expected. Additionally, Bank of Japan officials are considering lifting rates out of the negative zone.
On the corporate front, Costco (COST) shares fell 7% after a quarterly sales miss overshadowed an earnings beat. Broadcom’s (AVGO) revenue beat and forecast for $10 billion in sales of AI-linked chips failed to impress investors, sending the stock over 6% lower.
In commodities, gold futures (GC=F) continued to rally, with spot gold eyeing its biggest weekly jump in five months amid optimism for a mid-year Fed rate cut.
Bitcoin (BTC-USD) reached an all-time high on Friday, surpassing $70,000 for the first time, before dropping back down as some investors locked in profits. Nvidia (NVDA) saw a 5% pullback during afternoon trading, while Rivian (RIVN) rose 2% after unveiling new lower-priced SUVs.
Overall, the stock market wobbled in afternoon trading, with the S&P 500 near the flatline and the Nasdaq Composite down 0.3%. RealPage expects muted rent growth in 2024, as an influx of apartment supply pressures rent growth. Costco announced plans to enter the sushi business, showcasing its unique approach to retail.
