US stock markets are wrapping up a tumultuous week on a mixed note, with the Dow Jones Industrial Average slipping 200 points, or 0.5%, during Friday afternoon trading.
Investors had high hopes for the Dow to surpass the coveted 40,000 threshold, a milestone it briefly reached in premarket trading, but failed to maintain during regular trading hours. Nonetheless, despite this setback, the blue-chip index is poised to conclude one of its strongest weeks since December.
Both the S&P 500 and the tech-heavy Nasdaq experienced contrasting movements on Friday afternoon. While the S&P 500 remained relatively flat, the Nasdaq edged 0.3% higher, inching closer to yet another record high.
The market saw a notable surge in artificial intelligence stocks earlier in the week, contributing to two consecutive record-setting sessions across the major indexes. This rally was further fueled by optimistic projections from the Federal Reserve, forecasting three interest rate cuts for the US economy by the year's end.
However, the upbeat market sentiment was dampened by disappointing news from the performance wear sector. Lululemon's shares tumbled nearly 15% after the company issued a downbeat forward guidance, potentially marking its worst trading day since March 2020. Similarly, Nike witnessed a 6.4% decline in its stock value after reporting slowing sales in China and revising its future earnings outlook.
Meanwhile, Reddit faced a downward adjustment in its second day of trading, with shares dropping approximately 4% after experiencing a 48% surge during its debut on the New York Stock Exchange.
In contrast, Apple investors remained relatively unfazed by the Department of Justice's antitrust lawsuit filed against the tech giant on Thursday, as the company's shares edged 0.8% higher as of Friday noon.
Friday also saw shareholders greenlighting a significant deal involving Truth Social owner Trump Media, paving the way for the company to go public. The merger, expected to close as early as next week, marks a significant financial opportunity for former President Donald Trump. However, despite the potential windfall, it's unlikely to alleviate his ongoing legal challenges.
While the approval from Digital World Acquisition Corp. shareholders was a significant milestone for the merger, not all investors were in favor of the deal, as evidenced by the 6.1% decline in the company's stock price on Friday.
