U.S. Stocks Hold Steady Near Record Levels Despite European Slide
NEW YORK (AP) — U.S. stocks remained near their record levels on Friday, with Wall Street staying relatively quiet despite a slide in Europe. The S&P 500 edged down by less than 0.1%, breaking a streak of setting all-time highs throughout the week. The Dow Jones Industrial Average dipped 57 points, or 0.1%, while the Nasdaq composite added 0.1% to its record set a day earlier, driven by gains in technology stocks.
Meanwhile, European markets experienced sharper losses, with recent election results in Europe causing concern among investors. Wins by far-right parties have raised worries about the stability of the European Union, particularly in France, which could impact fiscal plans and debt repayment. France’s CAC 40 fell 2.7%, while Germany’s DAX lost 1.4%.
On Wall Street, RH, a seller of home furnishings, saw its stock drop by 17.1% after reporting a worse loss for the latest quarter than expected. The company cited the current housing market as the most challenging in three decades, attributing the difficulties to high mortgage rates.
Cruise-ship operators also faced losses, with Norwegian Cruise Line dropping 7.5% and Carnival falling 7.1% after analysts flagged softening price trends for trips. Despite these setbacks, hopes for a potential interest rate cut by the Federal Reserve later this year have kept stocks at record levels. Technology stocks, in particular, continue to perform well regardless of economic conditions.
Adobe saw a significant jump of 14.5% after reporting stronger profits than expected, while Broadcom rose 3.3% following better-than-expected earnings and a stock split. Nvidia also gained 1.8%, contributing to the overall positive performance of the S&P 500.
In the bond market, U.S. Treasury yields ticked lower after a report indicated that consumer sentiment failed to improve as expected. However, expectations for upcoming inflation among U.S. consumers have remained relatively stable, providing some reassurance for the economy.
Overall, the S&P 500 dipped slightly, the Dow lost ground, and the Nasdaq composite saw modest gains. In Asia, markets were mixed, with Japan’s Nikkei 225 rising after the country’s central bank held steady on interest rates.
Despite the challenges in global markets, U.S. stocks have shown resilience, buoyed by hopes of a potential interest rate cut and strong performances from technology companies. The situation remains fluid, with investors closely monitoring economic indicators and geopolitical developments for further insights into market trends.
