Wall Street closed out its third winning week in four with a quiet finish on Friday, as the S&P 500 edged down by less than 0.1% after setting an all-time high the previous day. The Dow Jones Industrial Average fell 142 points, or 0.3%, while the Nasdaq composite rose slightly to add another record.
Norfolk Southern surged 2.5% higher after reports of a potential merger with Union Pacific, which would create the largest railroad in North America and connect the East and West coasts. However, such a deal is likely to face intense regulatory scrutiny from US authorities.
Netflix fell 5.1% despite reporting stronger-than-expected profits, as investors had already expected significant gains for the year so far. American Express also delivered better-than-expected results but saw its stock lose 2.3%, with analysts citing slowing growth in some trends.
Exxon Mobil sank 3.5% and Chevron fell 0.9% after an arbitration ruling allowed the $53 billion deal to buy Hess to proceed, despite initial challenges.
The S&P 500 closed at 6,296.79 points, down 0.57 from its previous close. The Dow Jones Industrial Average dropped to 44,342.19, and the Nasdaq composite rose to 20,895.66.
In other news, Treasury yields eased after a report suggested US consumers may be feeling less fearful about inflation, with expectations of 4.4% annual inflation down from 5%. This could ease concerns over high inflation feeding into vicious cycles. However, overall consumer sentiment remains below historical averages.
A top Fed official has called for the Federal Reserve to cut its overnight interest rate as soon as its next meeting in a couple of weeks, following criticism from President Donald Trump over the Fed’s decision to hold rates steady this year. Traders expect lower rates but note potential risks, including the impact on inflation and tariffs.
Source: https://apnews.com/article/markets-stocks-japan-inflation-rates-43b87b3786fdd2971f3b8c52ffedc20a