The stock market limited its losses Friday as the Dow Jones Industrial Average turned positive and the S&P 500 was near break-even territory at the close. Investors digested inflation data that offered some comfort, but that was offset by President Donald Trump's accusations against China of violating a U.S. trade pact.
After spending most of the day in the red, the Dow reversed higher to close with a slight gain of 0.1%. It cracked the 42,200 level but remains below its 200-day moving average. Blue chip player Nvidia sank nearly 3% and was the biggest loser on the 30-stock index. The weakness comes after Nvidia stock had a disappointing reaction to earnings Thursday.
The Nasdaq composite lagged the other major indexes Friday afternoon, but cut losses to 0.3% following Thursday's stalling session. Stalling is another form of distribution, and the Nasdaq currently shows three distribution days.
The S&P 500 trimmed losses to near zero and finished just a shade below break-even. The benchmark index remained above its 200-day line. The Russell 2000 small-cap index ticked 0.2% lower.
Volume was lower on the Nasdaq and higher on the New York Stock Exchange vs. Thursday. Losers beat winners on the Nasdaq exchange by more than 4-to-3 and roughly 6-to-5 on the NYSE.
Oil prices sank to around $60.75 a barrel. Bitcoin dropped to around $104,500, and the benchmark 10-year Treasury bond fell three basis points to 4.39%.
Inflation Mixed With Trump
In economic news, the Personal Consumption Expenditures index was up 2.5%, in line with estimates, and at its lowest level since March 2021. Personal income jumped 0.8%, however, well above the 0.3% predicted by economists. The PCE index is considered the favored inflation gauge of the Federal Reserve in determining the direction of interest rates.
Meanwhile, Trump's statement on social media regarding China made markets tremble before the open. The president didn't explain how China violated the pact with the U.S. Earlier this month, Trump slashed tariffs on Chinese goods to 30% from 145% while Beijing cut its levies to 10% from 125%.
But the news hit the Krane CSI China Internet exchange traded fund. It gapped below its 50-day line with a loss of nearly 3%.
Market Rally At Key Levels; Five Stocks Near Buy Points
Stock Market Today: This Biotech Breaks Out
Alnylam Pharmaceuticals climbed 4% and broke out of a long consolidation pattern with a 304.39 buy point. The MarketSurge Growth 250 stock is in the buy range up to 319.61.
The biotech stock reached an all-time high on the stock market today. Moreover, its relative strength line hit a 52-week high as shown by the blue dot on its chart.
IBD 50 name Palomar Holdings spiked 4.6% and lifted to a fresh record high. The stock received price hikes from two analysts Friday.
3:20 p.m. ET
IPO Names Show Big Swings
Recent new issue CoreWeave looked to end a short losing streak as it bolted 4.4% higher Friday. The IBD 50 and MarketSurge Growth 250 name hit a record high Thursday but reversed lower in a two-day retreat.
Even with the two-day sell-off the stock has climbed around 185%, and it has only been trading since late March. Shares hold a highest-possible 99 Relative Strength Rating from Investor's Business Daily. CoreWeave rents out data centers to businesses.
Another new issue and MarketSurge Growth 250 name, LZ Technology Holdings, plunged 9% after a huge, rapid run-up. The China-based smart home connectivity stock reached a record high Thursday. LZ Technology stock started trading on Feb. 27, with 1.8 million shares at 4.
Tenet Healthcare climbed more than 2% and back into a buy zone up to 177.70 from the 169.24 buy point of a cup-with-handle base. Tenet operates around 640 surgical and outpatient facilities and 49 specialty hospitals.
2:01 p.m. ET
Gap Plummets After Warning
Gap stock plunged around 18% in heavy volume even after the apparel retailer beat fiscal first-quarter profit and sales estimates. But investors clued in on its fiscal 2025 guidance, which warned that even with strategies to lower the effects of tariffs it will increase costs.
"The company estimates a remaining net impact of about $100 million to $150 million to fiscal 2025 operating income," the earnings release said.
IBD SwingTrader name Royal Caribbean Group trimmed a larger gain to 0.6% in recent action. The cruise line stock climbed back into a buy zone up to 268.59 of a cup-with-handle base with a 255.80 entry.
12:30 p.m. ET
Stock Market Today: Palantir Jumps, Chip Stocks Sink
Palantir was a top gainer in the Nasdaq 100, up nearly 5%, on a New York Times report the Trump administration will tap the company to help the federal government share data across agencies. The stock gave a buy signal with a decisive move above its 10-day moving average. It's also threatening a breakout over its recent high of 133.49.
Semiconductor stocks lagged badly in the Nasdaq 100, with Marvell Technology, Micron and Intel leading the downside with losses of nearly 3% to more than 6%.
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Inside the MarketSurge Growth 250, Brinker International continued to round out the right side of a cup base with a gain of more than 2%. Brinker is the parent company of restaurant chain Chili's, which has been firing on all cylinders lately.
German software firm SAP climbed above the 300 level after a successful breakout from a double-bottom base. It's now just below an alternate entry of 303.39.
Elsewhere, Robinhood Markets reversed higher above its 10-day line with a gain of around 0.6%. It's trying to clear a handle entry of 66.89 that's only seen on the daily chart.
10:37 a.m.
Tesla Pares Losses
Tesla pared early losses and turned higher after Morgan Stanley analyst Adam Jonas warned investors to keep expectations contained ahead of Tesla's expected robotaxi launch in Austin, Texas, on June 12. Despite the lower open, Tesla is still holding comfortably above its 10-day line after Tuesday's breakout.
In the security software group, Zscaler gapped up to an all-time high after reporting strong earnings. The bullish gain comes after group peer Okta sold off on earnings earlier in the week.
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Leaderboard stocks CrowdStrike and Rubrik will be out with earnings next week. CrowdStrike reports late Tuesday. Results from Rubrik will be out late Thursday.
Stock Market Today: Costco Hits New Buy Point
Retailer Costco jumped nearly 3% and hit a new buy point on the heels of a strong earnings report. Costco was slightly off highs after briefly topping a 1,043.74 handle entry.
Ulta Beauty was another big earnings winner, up around 15%. Earnings handily beat expectations and the company raised its annual earnings guidance. The stock hit a new 52-week high, but Ulta still has a ways to go to get to its all-time high of 574 set in March 2024.
Uber fell another 2% after Thursday's heavy-volume decline. Uber is now firmly below its 21-day exponential moving average, normally a key support level for leading growth stock.
Sentiment was negative Thursday on news of Tesla's planned robotaxi launch next month. Uber has autonomous driving plans of its own via a partnership with Volkswagen, with plans to launch in Los Angeles in early 2026.
Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight. And follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
