S&P 500 eases after recent rally, but tech shares rise

June 14, 2024 6:08 AM EDT

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 12, 2024. REUTERS/Brendan McDermid/File Photo

By Caroline Valetkevitch

NEW YORK (Reuters) -The S&P 500 edged lower on Friday, ending a four-day run of record closing highs, but gains in Adobe and other technology shares limited the decline.

The S&P 500 technology sector rose, with Adobe shares jumping after the company raised its annual revenue forecast on more demand for its artificial intelligence-powered software.

Investors were also digesting economic data to gauge how soon the Federal Reserve might be able to cut interest rates.

A preliminary reading of the University of Michigan's Consumer Sentiment Index slipped to 65.6 in June, sharply lower than expectations.

On Wednesday, Fed policymakers dialed back their projections for three cuts this year to just one.

"The main situation here is we've got an extended market," said Adam Sarhan, chief executive of 50 Park Investments in New York. "You've had a big rally this week, led by big-cap tech. Under the surface, we have a lot of areas acting weak."

According to preliminary data, the S&P 500 lost 1.48 points, or 0.03%, to end at 5,432.26 points, while the Nasdaq Composite gained 24.20 points, or 0.14%, to 17,688.88. The Dow Jones Industrial Average fell 57.50 points, or 0.14%, to 38,591.49.

The Russell small-cap index fell.

Fed Bank of Chicago President Austan Goolsbee said he was relieved after data this week showed inflation in May had cooled, but he would still like to see "more months" of similar data before cutting interest rates.

Nvidia shares also were higher.

(Additional reporting by Lisa Mattackal and Johann M Cherian in Bengaluru; Editing by Maju Samuel and Richard Chang)

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