Proactive Investors -
- Wall Street opens lower
- US stocks experienced record week
- Fed bolsters prospects of rate cuts
9:38am: Stocks opens lower
US stocks have opened lower after appearing to lose some of their momentum from the last couple of days.
The Dow Jones was down 9 points at 39,771, while the Nasdaq deopped 18 points at 16,384.
The S&P 500 kept flat at 5,241.
On Thursday, the major indexes closed at record levels, having hit all-time intraday highs.
Some of the equities which made the biggest moves at the start of trading include Lululemon and Nike (NYSE:NKE), down 13.5% and 7% respectively, after the two warned of a weaker-than-anticipated sports clothing industry in the near-term.
Other movers included Reddit, down 2%, after a stellar debut and Best Buy (NYSE:BBY), up 3%, after JP Morgan (NYSE:JPM) upgraded it from neutral to overweight.
Much of this week's strong performance has been driven by the dovish outlook provided by the Federal Reserve, which indicated there could be three interest rate cuts in 2024, the first of which in summer.
8:37am: Wall Street to open lower after strong week
Wall Street is set to open lower on Friday, but all three indexes are due to close the week out higher after two consecutive days of record-setting gains on Wednesday and Thursday.
The Dow Jones is positioned to open flat at 40,192, while the S&P 500 and Nasdaq are set to begin trading 7 and 51 points lower respectively.
FedEx (NYSE:FDX) shares are trading around 11% higher in the premarket after the postal service reported a third-quarter profit beat and promised investors a US$5 billion share buyback.
Falling the other way was Lululemon, down around 13% in premarket trading, after its forward-looking estimates came in lower than Wall Street had been expecting.
Nike also slid around 6% after it warned investors that both near-term and long-term prospects were downbeat.
The company projects slight revenue growth in the near term and has not specified the expected growth rate for fiscal 2025, against analysts' predictions of a 5.6% increase.
Meanwhile, newly listed Reddit has reversed marginally from its 48% gains on its debut yesterday, with shares down 2.5% in premarket trading.