US equity indexes traded mixed midday Friday, giving up some of their strong gains from the prior trading session in the aftermath of the Federal Reserve's policy easing. The S&P 500 index fell 0.1% to 5,705.9, and the Nasdaq Composite slid 0.2% to 17,969.5. The Dow Jones Industrial Average rose 0.2% to 42,102, turning the corner.
All sectors except communication services, utilities, and consumer staples experienced a decline intraday. Materials and industrials led the decliners. The mixed sentiment on Friday afternoon follows a rally on Thursday when the S&P 500 reached its 39th all-time high for this year subsequent to the Federal Reserve easing the policy rate for the first time since March 2020.
The Dow also touched two new 52-week highs this week as the central bank cut rates after remaining on the sidelines for a substantial 13 months. Most US Treasury yields fell intraday, with the 10-year yield down 1.8 basis points to 3.72% and the two-year rate 2.8 basis points lower at 3.58%. In economic news, state-level data released by the Bureau of Labor Statistics Friday indicated that the unemployment rate rose in six states and the District of Columbia in August, while it fell in one state and remained stable elsewhere.
Notably, the largest unemployment rate gain was observed in South Carolina, where it increased by 40 basis points. In company news, Constellation Energy ($CEG) announced Friday that it signed a 20-year power purchase agreement with Microsoft ($MSFT), facilitating the launch of the Crane Clean Energy Center and the restart of Three Mile Island Unit 1, which had been shut down for five years.
Shares of Constellation surged 20% intraday, making it the top gainer on both the S&P 500 and the Nasdaq. FedEx ($FDX) reported an unexpected decline late Thursday in fiscal Q1 adjusted earnings and revenue. Consequently, shares of the parcel delivery firm plummeted 14% intraday, marking it as the worst performer on the S&P 500. Nike ($NKE) announced Thursday that Elliott Hill will rejoin the company as chief executive officer, effective Oct.
14. John Donahoe will retire from the CEO position, effective Oct. 13, but will remain on board as an advisor to ensure a seamless transition through Jan. 31, 2025. Hill previously served as president of consumer and marketplace before his retirement in 2020. Shares of Nike jumped over 6% intraday, establishing it as the leader on the Dow. West Texas Intermediate crude oil futures increased by 0.6% to $72.35 a barrel. "After the FED opened the door for risk appetite overnight on Wednesday, it did take a little while for the ever-present bulls to step through ...
It’s reasonable to assume that digestion of the significant rate cut had to first dismiss the notion that it was in some ways defensive, given the recent poor employment data which the [jobless] claims [released Thursday] indicated eased," PVM Oil Associates commented. Gold prices surged 1.2% to $2,646.60 an ounce after reaching a new intraday high of $2,650.60.
Silver also recorded a rise of 0.4%, reaching $31.55. "Gold is trading at a fresh record high," reinforced by interest-rate cuts and ongoing tensions in the Middle East, as stated by Saxo Bank in a research note..