Highlights
Stocks faded to end mostly weaker Friday as the traders trimmed risk positions amid ongoing Middle East concerns and signs of US economic weakness. The Dow Jones industrial average firmed by 0.1 percent, the S&P 500 eased 0.2 percent, and the Nasdaq slipped 0.5 percent. US Treasury yields and oil prices declined while the dollar rose.
Equities got a lift early in the day after Federal Reserve Governor Christopher Waller suggested the Fed could consider cutting rates as early as July in response to a weakening job market. That contrasted with Fed Chair Jerome Powell's comments this week that the Fed remains on hold pending clarity on the inflationary impact of tariffs. The Waller comments added to a run of weaker than expected economic reports to bolster the view that rates are headed lower.
The equities bid faded after Richmond Fed President Tom Barkin told Reuters there is no rush to cut rates given lack of visibility and inflation risks. Sentiment was also undercut by disappointment that a meeting of European foreign ministers and their Iranian counterpart did not yield progress in cooling the dispute between Israel and Iraq. Iraq has said it will not negotiate over its nuclear program while it is under attack.
Among sectors, chipmakers had a bad day after a report that the US was likely to end waivers allowing them to sell chipmaking technology in China. Communications stocks suffered from a selloff in Alphabet on worry over its antitrust case in an EU court. Energy stocks advanced as oil prices remain elevated by the Mideast conflict.
Equities got a lift early in the day after Federal Reserve Governor Christopher Waller suggested the Fed could consider cutting rates as early as July in response to a weakening job market. That contrasted with Fed Chair Jerome Powell's comments this week that the Fed remains on hold pending clarity on the inflationary impact of tariffs. The Waller comments added to a run of weaker than expected economic reports to bolster the view that rates are headed lower.
The equities bid faded after Richmond Fed President Tom Barkin told Reuters there is no rush to cut rates given lack of visibility and inflation risks. Sentiment was also undercut by disappointment that a meeting of European foreign ministers and their Iranian counterpart did not yield progress in cooling the dispute between Israel and Iraq. Iraq has said it will not negotiate over its nuclear program while it is under attack.
Among sectors, chipmakers had a bad day after a report that the US was likely to end waivers allowing them to sell chipmaking technology in China. Communications stocks suffered from a selloff in Alphabet on worry over its antitrust case in an EU court. Energy stocks advanced as oil prices remain elevated by the Mideast conflict.
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.
