U.S. stocks fell from record highs on Friday as rate cut euphoria faded, with FedEx ( FDX ) earnings reality check.
The benchmark S&P 500 (^GSPC) index fell roughly 0.3% after closing at an all-time high. The Dow Jones Industrial Average (^DJI) traded flat as it neared its own record high. Leading the bottom, tech-heavy Nasdaq Composite ( ^IXIC ) contracts fell 0.3%.
Stocks rose on Thursday as investors welcomed news from Chairman Jerome Powell that the Federal Reserve had made a major interest rate cut to support the economy — bolstered by jobless claims data.
That roaring rally comes amid reminders that risks to growth may lie ahead. Wall Street is still wondering if the Fed is lagging behind in keeping the economy on track for a “soft landing.” Traders are pricing in deeper cuts this year, according to Fed funds futures, rather than policymakers’ “dot plot” projections.
Read More: What Fed Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards
And, according to Bank of America’s top strategist, those Fed-fueled high spirits are fueling the risk of a bubble. Michael Hartnett said stocks are priced in on levels of policy easing and earnings growth that are prompting investors to chase profits.
Wall Street is missing the estimate. The delivery company — a bellwether for the economy — saw its shares tumble as much as 14% in early trade.
Elsewhere, Nike ( NKE ) shares rose after the sportswear maker named a new CEO as its sales came under pressure.
live3 updates
