The Nasdaq Composite dropped 0.5% by midday Friday, part of a broad pullback across major US indices after weak consumer sentiment and retail sales data. Gold and Treasury yields rose as investors weighed a less likely Federal Reserve rate cut against fresh signs of economic softness.
The Nasdaq Composite fell 0.5% to 26,664.30 as of 11:39 a.m. ET on Friday. The S&P 500 slipped 0.21% to 7,782.65, while the Dow Jones Industrial Average eased 0.19% to 53,735.56. Technology and healthcare stocks led the decliners, but energy, real estate, and basic materials gained.
Gold climbed 1.26% to $4,351.26, and the 10-year Treasury yield ticked up 0.05% to 4.69%.
Consumer data drags on sentiment
Two consumer releases weighed on stocks. July retail sales fell for the first time in nine months, and the University of Michigan's August consumer sentiment index dipped to 51, from 55.2 in July. The survey showed consumers are concerned about inflation and business conditions, and slowing sales suggest elevated oil prices are weighing on household budgets.
A rate cut looks less likely, yet stocks still wobbled
A weaker confidence reading, combined with this week's slower inflation data, makes a Fed rate cut less likely, which can boost risk appetite. However, stocks wavered instead, since the same data also raised concerns about economic weakness and the durability of recent index highs.
Even so, the S&P 500 is on track for a third consecutive weekly gain after breaking the 7,800-point level yesterday, as technology and artificial intelligence stocks post strong earnings.
Reddit jumps on S&P 500 inclusion
Among individual movers, Reddit jumped 14% after news it will join the S&P 500. Semiconductor shares such as Micron Technology gained on AI optimism, while T-Mobile US slipped after a brokerage downgrade cited revenue risks.
Source: The Motley Fool
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