Stocks slip after Dow hits record, but head for winning week: Live updates

Stocks fell Friday to cap a big rally for the week that came in the wake of the first major easing of interest rate policy by the Federal Reserve since the pandemic.

The Dow Jones Industrial Average fell 70 points, or 0.2%. The S&P 500 dipped 0.5%, and the Nasdaq Composite pulled back 0.6%. On Thursday, the Dow Jones Industrial average hit a record above 42,000 and the S&P 500 climbed above 5,700 for the first time.

The three major averages are on pace for weekly gains. The S&P 500 is up 1.2%, on pace for its fifth positive week over the last six weeks, and year-to-date gains over 19%. The Dow is toting a 1.5% jump on the week, while the tech-heavy Nasdaq is up 1.3%.

On Wednesday afternoon, the Federal Reserve slashed interest rates by a super-sized half-point, its first cut since 2020. In a delayed reaction, the market climbed higher on Thursday as investors crowded into tech names like Nvidia and shares set to benefit from lower rates like Home Depot.

“After digesting the Fed meeting for a day, investors appear to have warmed to the Fed’s decision, along with the confidence expressed by chair Jerome Powell in the continued resilience of the US economy,” Solita Marcelli, chief investment officer Americas, UBS Global Wealth Management, said in a note.

“Historically, stocks have performed well in periods when the Fed is cutting rates while the US economy is still growing. Markets now appear to be expecting this outcome,” Marcelli said.

FedEx dented sentiment a bit on Friday after the shipping behemoth cut its earnings outlook. Shares dropped nearly 11% and competitor UPS shed more than 3% in sympathy.