US stocks closed with mixed results on Friday, as investors navigated through a blend of optimistic sentiment and cautiousness regarding interest rate hikes. The tech-heavy Nasdaq Composite achieved a fresh record high, reflecting investors’ optimism about a potential reversal from interest rate increases.
The Nasdaq Composite, which initially started the day in negative territory, reversed course in the mid-afternoon session to close approximately 0.2% higher. Conversely, the Dow Jones Industrial Average, aiming for the significant 40,000 milestone, experienced a decline of about 0.7%. Meanwhile, the S&P 500, a key benchmark index, slipped by 0.1%.
Despite the mixed performance on the day, all three indices recorded solid gains for the week. These gains were driven by reaching all-time closing highs earlier in the week, fueled by the Federal Reserve’s reassurance that it might not reduce its forecast for interest rate cuts this year. Additionally, optimism prevailed regarding indications from major central banks signaling a readiness to shift their monetary policies.
In the corporate sphere, FedEx shares surged by approximately 7% following improvements in operating margins at the parcel giant’s largest unit, alongside a profit beat. Conversely, Nike shares declined by about 7% as investors reacted to disappointing sales guidance within the company’s mixed financial results.
Lululemon (LULU) shares plunged 15% due to disappointing first-quarter guidance, with expected earnings of $2.35 to $2.40 per share, below the estimated $2.55. Additionally, the forecasted revenue of $2.18 billion to $2.2 billion fell short of Wall Street’s expectations of $2.26 billion.
Tilray (TLRY) saw a surge of over 15% following Germany’s parliament’s approval of partial cannabis legalization for personal use. This development coincided with Vice President Kamala Harris’s call for the DEA to expedite its review on reclassifying marijuana. The news also drove up shares of Cronos Group (CRON) by 8% and Canopy Growth (CGC) by a substantial 58%.
In conclusion, today’s market performance showcased a mix of ups and downs, with the Nasdaq Composite reaching a remarkable record high, underscoring investor optimism despite the uncertainties surrounding interest rate hikes.
