Highlights
Stocks retreated slightly Friday amid profit-taking after Thursday's rally after the Federal Reserve's big rate cut. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 eased 0.2 percent and the Nasdaq slipped 0.4 percent. Bond yields were mixed with shorter yields lower and long yields higher. The dollar and oil prices declined.
In Friday's price action, consolidative pressures were at work after very strong gains after the Fed's aggressive 50 basis point cut. The market also reacted badly to earnings and guidance from Fedex, the parcels business, which is regarded as a bellwether for the consumer sector. And the market was affected by quadruple witching expiration of options and stock futures.
On a quiet day for economic news, comments from Federal Reserve officials were mixed, with Fed Governor Chris Waller speaking favorably about the Fed's decision and pledging more action if needed. Fed Governor Michelle Bowman, the sole dissenter, warned that the Fed risked resurgent inflation by cutting rates too much too soon.
Among sectors, weakest were energy, industrials, materials, real estate and financials. Holding up best were communications services and utilities.Among tech shares, Intel rallied on a report of a possible acquisition by Qualcomm.
In Friday's price action, consolidative pressures were at work after very strong gains after the Fed's aggressive 50 basis point cut. The market also reacted badly to earnings and guidance from Fedex, the parcels business, which is regarded as a bellwether for the consumer sector. And the market was affected by quadruple witching expiration of options and stock futures.
On a quiet day for economic news, comments from Federal Reserve officials were mixed, with Fed Governor Chris Waller speaking favorably about the Fed's decision and pledging more action if needed. Fed Governor Michelle Bowman, the sole dissenter, warned that the Fed risked resurgent inflation by cutting rates too much too soon.
Among sectors, weakest were energy, industrials, materials, real estate and financials. Holding up best were communications services and utilities.Among tech shares, Intel rallied on a report of a possible acquisition by Qualcomm.
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.
