Wall Street Pulls Back from Record Highs as Tech Stocks Stumble
In a shaky day of trading on Friday, Wall Street pulled back from its record highs, putting a temporary halt to its huge rally since Halloween. The S&P 500 fell 0.7% from its all-time high set a day before, as mixed data on the U.S. job market and a stumble in tech stocks led to a market-wide dip.
The Nasdaq composite took the biggest hit, falling 1.2%, while the Dow Jones Industrial Average slipped 0.2%. The weakness in tech stocks, particularly Nvidia, led to the market-leading losses.
The bond market also saw a reaction to the mixed job market data, with Treasury yields easing. Economists described the data as “all over the place,” showing stronger job growth than expected but lower-than-forecast wage increases.
The job market and overall economy are in a delicate spot, with Wall Street hoping for continued growth without raising inflation pressures. The Federal Reserve is closely monitoring these factors, with traders betting on rate cuts starting in June.
Fed Chair Jerome Powell hinted at potential rate cuts, stating that the central bank is “not far” from making a move. The hope on Wall Street is that the resilient economy will continue to drive growth in company profits.
Despite the overall market dip, some companies reported stronger-than-expected profits, including Gap and Smith & Wesson Brands. However, tech giant Nvidia saw a significant drop of 5.5%, its worst day since May, after a remarkable surge in stock price.
Overall, the S&P 500 fell 33.67 points, the Dow dropped 68.66 points, and the Nasdaq slid 188.26 points. Stock markets abroad were mixed, with modest gains in Asia and mixed results in Europe.
The market remains volatile as investors navigate through mixed economic data and uncertainty surrounding interest rate cuts. Stay tuned for more updates on Wall Street’s reaction to upcoming economic indicators.
