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14/06/24
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Wall Street Retreats at End of Positive Week
On Friday, stocks on Wall Street fell and handed back some of the week’s gains as investors evaluated strength in the technology sector, an easing in inflation as well as a hawkish Federal Reserve.
The NASDAQ Composite slipped 50 points, or 0.3%, the S&P 500 dropped 17 points, or 0.3%, and the Dow Jones Industrial Average fell 175 points, or 0.5%.
Despite the losses on Friday, the Nasdaq is still on course to gain 2.7% this week and the S&P 500 1.2%, while the 30-stock DJIA lagged with a 0.9% drop.
Earlier in the week, data showed that producer prices in May fell unexpectedly, a day after the slightly softer consumer price index. This added to optimism that there was a disinflationary trend which would likely lead to lower interest rates by the end of this year.
That helped ease some market jitters about this week’s updated policy projections by the Fed, which showed that the central bank now expects to cut rates only once in 2024.
Earlier Friday, Loretta Mester, the Cleveland Federal President said that it was important to not wait too long to reduce interest rates, as it was clear that monetary policy was having an effect on the economy.
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