On Friday, U.S. stocks hovered around their all-time highs while Wall Street remained relatively subdued following declines in European markets.
The S&P 500 edged slightly lower by less than 0.1%, halting its streak of setting new records for the week. The Dow Jones Industrial Average slipped 57 points, or 0.1%, and the Nasdaq composite added 0.1% to its previous day’s record, driven by gains in technology stocks.
Meanwhile, European markets experienced sharper losses amidst concerns over recent election outcomes, particularly victories by far-right parties that have heightened political pressures in France. Investors fear these developments could potentially destabilize the European Union, delay fiscal policies, and impact France’s debt repayment abilities. France’s CAC 40 plunged 2.7%, marking a weekly loss of 6.2%, its steepest decline in over two years, while Germany’s DAX fell 1.4%.
In U.S. trading, RH saw its shares plummet 17.1% after reporting quarterly losses that exceeded analysts’ expectations, citing challenging conditions in the housing market described as the toughest in three decades.
Cruise operators also faced significant declines after Bank of America analysts flagged weakening pricing trends for trips. Norwegian Cruise Line and Carnival both posted losses, with Norwegian dropping 7.5% and Carnival falling 7.1%, marking the worst performers in the S&P 500.
Despite these setbacks, optimism persists among investors regarding potential Federal Reserve interest rate cuts later in the year, buoyed by signs of easing inflation. Technology giants like Adobe, which surged 14.5% on stronger-than-expected quarterly profits, and Broadcom, up 3.3% following a positive earnings report and a stock split announcement, contributed to the market’s resilience. Nvidia also rose 1.8%, further boosting the S&P 500.
Overall, the S&P 500 closed down 2.14 points at 5,431.60. The Dow declined 57.94 points to 38,589.16, while the Nasdaq composite gained 21.32 points to reach 17,688.88.
In the bond market, U.S. Treasury yields dipped following a University of Michigan report indicating that consumer sentiment failed to improve this month, citing concerns over high prices and weakening incomes among U.S. households, critical factors in economic resilience.
