In the latest market developments, US equity indexes experienced a decline on Friday afternoon, surrendering some of the previous day's strong gains in response to adjustments made by the Federal Reserve regarding its monetary policy. The S&P 500 index slipped by 0.2%, settling at 5,699.7, while the Nasdaq Composite saw a 0.3% downturn, closing at 17,960.5.
The Dow Jones Industrial Average also retreated slightly, losing 0.03% to end at 42,010.7. Notably, all market sectors registered losses, with the exception of communication services and utilities, while materials, energy, and industrial stocks were particularly hard hit. This pullback followed a remarkable rally the previous day, when the S&P 500 reached its 39th all-time high this year, motivated by the Fed's first policy rate cut since March 2020.
Additionally, the Dow achieved two new 52-week highs this week as the central bank made this significant change in its policy after maintaining a steady course for 13 months. Treasury yields showed a mixed response, with the 10-year yield remaining stable at 3.73% and the two-year rate decreasing by 2.3 basis points to 3.58%.
In economic updates, the Bureau of Labor Statistics released state-level data on Friday, revealing an uptick in unemployment rates across six states and the District of Columbia during August. Meanwhile, only one state registered a decrease in its unemployment rate, with South Carolina facing the largest rise of 40 basis points.
Focusing on individual companies, Constellation Energy, designated with the ticker $CEG, announced on Friday that it has entered into a 20-year power purchase agreement with technology giant Microsoft, indicated by $MSFT. This significant deal is set to facilitate the launch of the Crane Clean Energy Center and resurrect operations at Three Mile Island Unit 1, which had been inactive for five years.
Following the announcement, shares of Constellation Energy surged, soaring by an impressive 16% during intraday trading, making it the top gainer on both the S&P 500 and Nasdaq indexes. Conversely, FedEx, labeled as $FDX in the markets, reported an unexpected decrease in its adjusted earnings and revenue for the first fiscal quarter late Thursday.
As a consequence, shares of the parcel delivery company plummeted by 14% during the trading session, marking it as the worst performer on the S&P 500 for the day. On the commodities front, West Texas Intermediate crude oil futures remained stable, trading at $71.95 a barrel, reflecting the ongoing volatility in energy markets.
As the market continues to react to Federal Reserve measures and company-specific developments, investors are advised to stay vigilant and informed of upcoming economic indicators and corporate earnings reports that could influence market trajectories..