Highlights
Equities ended flat to weaker Friday in quiet trading with stocks broadly lower amid limited selling. The Dow Jones industrial average was flat while the S&P 500 and Nasdaq both dipped 0.2 percent. Bond yields, oil prices and the dollar all fell.
Equities saw consolidative pressure headed into the weekend after setting new highs. Still, the major averages rose on the week with the Dow up 1.5 percent and the other two averages up a modest 0.5 percent.
Big technology stocks linked to the artificial intelligence play saw profit-taking late in the week, suggesting the mighty AI trade was ready for a breather. Nvidia, the bellwether AI play, ended the day down 3.2 percent and Broadcom was off 4.4 percent. Apple sank at the close to end down 1 percent for the day and off 3 percent for the week. Apple appeared to suffer from concerns that regulators in Europe and China would object to the iPhone maker's plans to roll out AI in its products.
Other megacaps including Amazon, Alphabet and Netflix had strong showings Friday to offset weakness elsewhere. Accordingly, best sectors included communications services, consumer discretionary, consumer staples and health care. Lagging were technology, financials, materials, utilities, industrials and real estate.
US Treasuries showed strength in the morning on carryover from gains in fixed income markets overseas after soft purchasing managers data followed a batch of softer U.S. indicators on Thursday. But flash U.S. purchasing managers reports surprised to the upside, as did existing home sales, which lifted bond yields from early lows, a negative for stocks in the afternoon.
Equities saw consolidative pressure headed into the weekend after setting new highs. Still, the major averages rose on the week with the Dow up 1.5 percent and the other two averages up a modest 0.5 percent.
Big technology stocks linked to the artificial intelligence play saw profit-taking late in the week, suggesting the mighty AI trade was ready for a breather. Nvidia, the bellwether AI play, ended the day down 3.2 percent and Broadcom was off 4.4 percent. Apple sank at the close to end down 1 percent for the day and off 3 percent for the week. Apple appeared to suffer from concerns that regulators in Europe and China would object to the iPhone maker's plans to roll out AI in its products.
Other megacaps including Amazon, Alphabet and Netflix had strong showings Friday to offset weakness elsewhere. Accordingly, best sectors included communications services, consumer discretionary, consumer staples and health care. Lagging were technology, financials, materials, utilities, industrials and real estate.
US Treasuries showed strength in the morning on carryover from gains in fixed income markets overseas after soft purchasing managers data followed a batch of softer U.S. indicators on Thursday. But flash U.S. purchasing managers reports surprised to the upside, as did existing home sales, which lifted bond yields from early lows, a negative for stocks in the afternoon.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
