Stocks rose slightly on Friday as Wall Street looked to end a strong week on a high note.
The S&P 500 dipped 0.1% as the tech sector lagged. The Dow Jones Industrial Average traded just below the flatline while the Nasdaq Composite slid 0.3%.
Apple shares pressured the tech sector, falling 0.6%. Micron Technology and PayPal also contributed to the sector’s losses, dipping around 2% each.
The S&P 500 gained nearly 1% on Thursday and posted a record close of 2,954.18. The broad index also reached an intraday record of 2,958.06.
Stocks surged in the previous session as investors cheered the prospects of the Federal Reserve cutting interest rates as soon as July.
The Fed said earlier this week it is ready to keep the current economic expansion going as trade tensions and weaker data dampen the U.S. economic outlook. The central bank also dropped the word “patient” from its monetary policy statement, which was released Wednesday.
This led investors to price in a 100% probability of a rate cut next month and bolstered equity prices this week. The Dow and S&P 500 were both up more than 2% for the week entering Friday’s session. The Nasdaq was up more than 3%.
“The biggest takeaway from this week is the power central banks still have to move markets, regardless of the reason,” said chief market strategist at Prudential Financial. “You go back to Jan. 4 with the Fed ‘pivot’ and you saw the market go up from the 2018 lows in dramatic fashion. Fast forward, the Fed verbally intervened in the market before this week’s meeting, suggesting they would be prepared to lower rates if the economy didn’t improve.”
Right now, “the market is applauding this message” from the Fed, Krosby said.
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The central bank’s announcement sent ripples across financial markets. The benchmark 10-year yield broke below 2% for the first time since November 2016. Gold prices hit their highest level since 2013.
Crude prices also surged this week as tensions between the U.S. and Iran increased after a drone was shot down over Iranian airspace. President Donald Trump reacted to the incident by saying Iran made a “very big mistake.” U.S. oil rose 0.6% to $57.44 per barrel and is up more than 9% for the week.