The Dow Jones Industrial Average rose 35 points on Friday, but fell short of its first closing record since December 4. The blue-chip index closed at 44,959.04, missing the historic mark.
Meanwhile, the S&P 500 and Nasdaq Composite indices plummeted 0.3% and 0.4%, respectively, due to concerns over looming chip tariffs affecting tech stocks. The Dow’s performance was seen as a missed opportunity after briefly reaching an intraday high on July 23.
A lackluster day also saw the release of retail sales data from the Census Bureau, which was deemed encouraging by some, while consumer sentiment surveys from the University of Michigan fell short of expectations.
The looming sector tariffs have intensified pressure on tech stocks, with President Donald Trump’s meeting with Russian President Vladimir Putin adding to market volatility. The Federal Reserve Chair, Jerome Powell, is set to deliver his annual speech at Jackson Hole next week, amidst pressure from the White House to lower interest rates.
Analysts expect Powell to maintain a cautious stance, repeating his ‘data-dependent’ mantra, despite signs of tariffs impacting wholesale prices. A rate cut in September remains likely, with 90% probability according to David Donabedian, co-chief investment officer of CIBC Private Wealth.
Source: https://www.barrons.com/livecoverage/stock-market-news-today-081525