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The S&P 500 fell on Friday as investors contemplated the path of future interest rate cuts by Federal Reserve and monitored the latest developments out of the Middle East.
The Dow Jones Industrials gained 35.16 points to end the week at 42,206.82.
The much-broader index retreated 13.03 points to 5,967.84.
The NASDAQ Composite sank 98.84 points, to 19,447.41.
Chip stocks came under pressure following a report by the Wall Street Journal that the U.S. may revoke waivers for some semiconductor manufacturers. Nvidia was down more than 1%, while Broadcom retreated 1% and Taiwan Semiconductor Manufacturing fell more than 2%.
Markets were closed Thursday for the “Juneteenth” holiday.
Stocks were relatively unchanged on Friday after Federal Reserve Governor Christopher Waller said inflation was tame enough that the central bank could cut rates at its next meeting, a more optimistic view than Chair Jerome Powell gave on Wednesday.
Fed Chair Jerome Powell said Wednesday the central bank was in no hurry to cut benchmark rates and will remain data dependent, especially as it remains unclear how Trump’s tariffs will impact the economy. Stocks closed slightly lower that day following those remarks.
Trump ripped into Powell again Thursday, saying the Fed Chair is costing the U.S. “hundreds of billions of dollars” by delaying rate cuts.
Investor fears around the conflict between Israel and Iran, which has yet to cool, were tamed after Trump said Thursday that he would decide whether to strike Iran within the next two weeks but wanted to allow for “a substantial chance of negotiations.”
Prices for the 10-year Treasury were higher, weighing yields to 4.38% from Wednesday’s 4.39%. Treasury prices and yields move in opposite directions.
Oil prices doffed 14 cents to $75.00 U.S. a barrel.
Gold prices slid $27.40 to $3,380.70 U.S. an ounce.
