The S&P 500 closed in negative territory as Microsoft stepped back from its all-time high

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The S&P 500 dropped by 0.36%, finishing the session at 4,409.77 points. The Nasdaq also experienced a decline of 0.68% to reach 13,689.57 points, while the Dow Jones Industrial Average decreased by 0.31% to settle at 34,301.03 points.

The S&P 500 dropped by 0.36%, finishing the session at 4,409.77 points

On Friday, the S&P 500 closed lower as Microsoft and other major companies weighed on the market. This was due to comments from two Federal Reserve officials that dampened hopes for a slowdown in the central bank’s aggressive rate hikes.

The Nasdaq also ended the week lower, although both the Nasdaq and S&P 500 remained near their highest levels in over a year. This was because economic data released during the week pointed to slowing inflation, which overshadowed concerns about future interest rate hikes.

After leaving interest rates unchanged on Wednesday, the Federal Reserve hinted that borrowing costs could rise by as much as half a percentage point by the end of the year. However, traders believe the Fed may hold off on rate hikes or even consider a December rate cut after a 25 basis point rate hike is expected in July, according to CMEGroup’s Fedwatch tool.

On Friday, Federal Reserve policymakers sought to dampen market optimism. Fed Governor Christopher Waller expressed concern that “core inflation is not coming down as expected” Richmond Fed President Thomas Barkin spoke of being “comfortable” with further rate hikes because inflation still has not returned to the 2% target.

“I believe the Fed will continue to respond to the market’s overenthusiasm and state that while it plans to raise rates two more times, it will be guided by the data,” said Sam Stovall, chief investment strategist at CFRA Research.

In June, U.S. consumers’ expectations for near-term inflation fell to the lowest level in more than two years, while the inflation outlook for the next five years improved slightly. This is according to a College of Michigan survey, which also showed an improvement in overall consumer sentiment.

The S&P 500 and Nasdaq were hurt by a 1.7% drop in Microsoft Corp. shares and a 1.3% drop in Amazon.com Inc. shares. Interestingly, Microsoft shares had hit their highest close ever on Thursday.

Nvidia Corp was up slightly by 0.1% after Morgan Stanley raised its price target and picked the chipmaker as the top pick among U.S. semiconductor companies.

Please note that US stock markets will be closed on Monday for the Juneteenth vacation.

The S&P 500 fell 0.36% to end the session at 4,409.77 points. The Nasdaq also declined 0.68% to close at 13,689.57 points, while the Dow Jones Industrial Average fell 0.31% to close at 34,301.03 points.

Trading volume on the US stock exchanges was high due to the simultaneous expiration of stock options, stock index futures and index option contracts. Nearly 17 billion shares were traded, which is above the average of 11 billion shares in the last 20 sessions.

Of the 11 sectors in the S&P 500, eight sectors were down. Communications services was the hardest hit, down 1%, followed by a 0.83% loss in the information technology sector.

For the week, the S&P 500 was up 2.6%, the Dow Jones was up 1.2%, and the Nasdaq was up 3.2%.

Thank you to strong performances from companies like Nvidia, the Nasdaq posted its eighth straight week of gains, its longest streak of weekly increases since March 2019.

The S&P 500 also posted its fifth consecutive weekly gain.

Adobe Inc rose 0.9% after the company’s earnings forecast beat analysts’ expectations.

iRobot Corp rose 21% after the U.K. competition regulator approved Amazon’s planned $1.7 billion acquisition of the vacuum cleaner maker.

Micron Technology, meanwhile, fell 1.7% after the company warned of a major impact on global revenue due to a Chinese ban on sales of its memory French fries to key domestic industries.

Within the S&P 500, falling stocks outnumbered rising stocks by a ratio of 1.4 to one.

During the period, the S&P 500 made 24 new highs and no new lows, while the Nasdaq made 112 new highs and 67 new lows.

The S&P 500 posted a 0.36% decline to end the session at 4,409.77 points. The Nasdaq also recorded a decline of 0.68% to close at 13,689.57 points, while the Dow Jones Industrial Average slipped 0.31% to close at 34,301.03 points.

Trading volume on the U.S. stock exchanges was remarkably high due to the simultaneous expiration of stock options, stock index futures and index option contracts. With almost 17 billion shares traded, the average of the last 20 trading days of 11 billion shares was exceeded.

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