On Friday, stocks initially declined but recovered as the day progressed, with the major averages ultimately closing with minor changes. The Dow Jones Industrial Average edged up 38.17 points (0.1%) to a new record high of 42,063.36. Conversely, the S&P 500 dropped 11.09 points (0.2%) to 5,702.55, and the Nasdaq fell 65.66 points (0.4%) to 17,948.32.
Despite Friday's mixed performance, the indices posted significant weekly gains. The Dow rose 1.6%, while the Nasdaq and the S&P 500 increased by 1.5% and 1.4%, respectively.
The initial weakness on Wall Street was partly due to profit-taking following Thursday's substantial rally. On Thursday, stocks surged in response to the Federal Reserve's decision to cut interest rates by 0.5 percentage points. However, the selling pressure diminished as traders hesitated to make significant moves without a clear upcoming market catalyst and in the absence of major U.S. economic data.
Investors are anticipating critical reports next week, including data on durable goods orders, new home sales, and consumer confidence. A report on personal income and spending, which includes the Fed's favored inflation gauge, is also expected to be pivotal.
### Sector Performance
Transportation stocks displayed significant weakness despite the overall market recovery, as evidenced by the Dow Jones Transportation Average's 3.5% decline. The steep drop was primarily driven by FedEx (FDX), which plunged 15.2% following disappointing fiscal first quarter earnings and a reduced full-year guidance.
Housing stocks also experienced a notable downturn, with the Philadelphia Housing Sector Index falling by 2.3%. Steel and semiconductor stocks saw similar declines, whereas gold and computer hardware stocks successfully gained ground.
### Global Markets
Asian stock markets mostly moved higher on Friday. Japan's Nikkei 225 Index climbed 1.5%, and Hong Kong's Hang Seng Index increased by 1.4%. Conversely, European markets declined notably. The U.K.'s FTSE 100 Index dropped 1.2%, while the French CAC 40 Index and the German DAX Index both fell 1.5%.
### Bond Market
In the bond market, treasuries exhibited limited direction throughout the session but eventually closed slightly higher. Consequently, the yield on the benchmark ten-year note decreased by 1.2 basis points to 3.728%.