Investors are closely monitoring new economic data, as murmurs grow of a potential interest rate cut in July.
US stocks closed mixed on Friday but finished the week higher even as the artificial intelligence trade showed signs of stumbling.
Leading the market higher this week was the Dow Jones Industrial Average, which was up nearly 2%. The S&P 500 and Nasdaq 100 finished the week higher by about one-half of a percent.
The meteoric rise of Nvidia stock took a breather on Thursday and Friday, with the stock down about 10% from its intra-day high of $140.76.
Other hot-AI stocks like Broadcom, Dell, and Super Micro Computer also fell between 1% and 3% in Friday’s trading session.
Investors are paying close attention to new economic data, as murmurs grow of a potential interest rate cut from the Federal Reserve in July following a spike in weekly jobless claims.
A July interest rate cut currently has a likelihood of just a 10%, according to the CME FedWatch Tool, though one economist sees the odds of a cut at the July policy meeting closer to 60%.
