The stock market is seeing a quiet end to the week on Friday, with U.S. stocks drifting as Nvidia’s stock cools off from its recent meteoric rise. The S&P 500 is slightly lower, the Dow Jones Industrial Average is up, and the Nasdaq composite is lower.
Nvidia, which had seen its stock soar over 1,000% since October 2022, is now facing its first losing week in the last nine days. The company’s drop is dragging down the market, but other companies are seeing positive movement. Sarepta Therapeutics jumped after receiving approval for its medicine, while CarMax exceeded profit expectations.
On the other hand, gun maker Smith & Wesson Brands saw a decline despite reporting stronger profits than expected. CEO Mark Smith attributed the drop to the slower summer season for firearms.
In the bond market, U.S. Treasury yields initially fell after weak business activity reports in Europe, but recovered after a report suggested stronger U.S. business activity. The Federal Reserve is facing a delicate balance as it tries to slow the economy without causing a recession or reigniting inflation.
Overall, traders are hopeful that the Fed can navigate this tricky situation, with many forecasting interest rate cuts later this year. However, Fed officials themselves have only penciled in one or two cuts in 2024.
Stock markets in Asia were also lower, with Hong Kong’s Hang Seng and South Korea’s Kospi both seeing declines. The market outlook remains uncertain as investors wait to see how the Fed will handle the current economic challenges.
