Stock market firms. S&P 500, Dow up for week. FedEx, Nike warn on outlooks
U.S. stocks closed slightly up, with the broad S&P 500 index and blue-chip Dow finishing the week higher, as investors refocus on tariff threats and economic data,
Stocks rallied Wednesday afternoon after the Federal Reserve left interest rates unchanged, as expected, but still predicted two more rate cuts this year despite tariffs that could boost inflation. However, the rally ran out of steam and investors scattered to the sidelines, allowing stocks to drift lower and attention to return to President Donald Trump's tariff threats and potential effects on the economy.
Stocks traded off their lows after Trump said Friday there will be “flexibility” on his reciprocal tariff plan planned to take effect on April 2. However, he seemed to rule out exceptions.
“People are coming to me and talking about tariffs, and a lot of people are asking me if they could have exceptions,” Trump told reporters in the Oval Office.
“And once you do that for one, you have to do that for all,” he said.
Separately, earnings warnings from corporate giants like Nike and FedEx spooked the market.
The S&P 500 rose 0.08%, or 4.67 points, to 5,667.56 and ended the week in the green to halt a losing streak at four weeks. The Dow added 0.08%, or 32.03 points, to 41,985.35 and posted its best week since January. The tech-heavy Nasdaq advanced 0.52%, or 92.43 points, to 17,784.05, but still unable to climb out of the red for the week, making it the index's fifth straight weekly loss and its longest stretch of weekly losses since May 2022.
The benchmark 10-year yield edged up to 4.25%.
Corporate news
- Nike topped analysts' estimates for earnings and revenue in the company's fiscal third-quarter, but sales in the final three months of its year are expected to be much worse than expectations. Shares of the sportswear giant plunged 5.46%, reaching the lowest level since 2020.
- Micron beat analysts' forecasts in the second quarter and expects to do so again in the third quarter. However, its gross margins were lower than expected, signaling higher costs that could eat into profits. The tech company's stock slid 8.04%.
- FedEx earnings missed analysts' expectations in the delivery company's fiscal third-quarter. The delivery company also lowered its earnings outlook, citing economic uncertainty. Shares slumped 6.45%.
- Carnival's fiscal first-quarter results beat analysts' forecasts, but the cruise company's shares slipped 1.16%.
- Alnylam Pharmaceuticals shares surged 11.75% after the company received Food and Drug Administration approval to sell its drug Amvuttra to more patients with a genetic heart condition.
- Tesla shares gained 5.27% after chief executive Elon Musk told the company's employees not to sell the stock despite its shares shedding half their value this year.
Cryptocurrency
Metaplanet, a Tokyo-listed investment firm that operates as a Bitcoin treasury company, named Eric Trump, second son of President Trump, to its Strategic Board of Advisors.
Separately, the U.S. Treasury Department said it removed economic sanctions against Tornado Cash, a so-called cryptocurrency mixing service that U.S. officials allege was used to launder funds stolen by North Korean hackers.
Still, bitcoin was last down 0.41% at $83,887.46.
This story was updated with new information and corrected headline.
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.