Stocks on Wall Street ended the week with mixed results as the S&P 500 saw its biggest weekly gain of 2024 following the Federal Reserve’s decision to stick with projections for three interest rate cuts by the end of the year.
The Nasdaq and a semiconductor index also saw slight gains, while the Dow ended lower on Friday. Consumer discretionary shares decreased, with Nike falling 6.9% after warning of a revenue decline in the first half of fiscal 2025.
Lululemon Athletica shares dropped 15.8% after forecasting lower-than-expected annual revenue and profit. The Fed’s decision to leave rates unchanged but signal potential rate cuts later this year was met with optimism by traders.
FedEx was among the day’s gainers, jumping 7.4% after surpassing Wall Street profit expectations. On the other hand, Digital World Acquisition fell 13.7% after shareholders voted to approve its merger with former U.S. President Donald Trump’s media and technology company.
Overall, the S&P 500 gained 2.3% for the week, the Dow climbed 2%, and the Nasdaq rose 2.9%. Traders are now anticipating a potential rate cut in June, with a 71% chance compared to 56% earlier in the week. Market analysts are cautious about the continued upward trend and anticipate a potential correction in the near future.
