US stocks lost momentum in morning trading on Friday after consumer sentiment hit a six-month low.
The Dow Jones Industrial Average (^DJI), looking for its eighth straight win, held on to gains of about 0.2%, with the S&P 500 (^GSPC) hovering above the flat line on the heels of closing above 5,200 for the first time. in a month. The Nasdaq Composite Index (^IXIC) fell approximately 0.1%.
Last University of Michigan Consumer Survey Data released on Friday revealed a 13% decline in overall sentiment during May. The index reading for this month came at 67.4, its lowest level in six months, and much lower than economists’ expectations of 76.2.
The decline in sentiment comes as investors debate the future of interest rate cuts amid recent signs of a slowdown in the labor market.
Read more: How does the labor market affect inflation?
Given this, investors will be listening closely to speeches from a large group of Fed spokesmen on Friday for more information on the timing, pace and opportunity for policy easing. Those scheduled to appear include Michelle Bowman, Neel Kashkari, and Austin Goolsby.
Earlier, Atlanta Fed President Raphael Bostic said he expected one rate cut late this year, but echoed fellow official Mary Daly’s preference to wait for a stronger signal that price pressures are easing.
On the corporate front, shares of TSMC (TSM) rose after the Taiwanese chipmaker giant said its sales jumped 60% in April. He credited the continued demand for artificial intelligence coupled with the revival of consumer electronic devices such as smartphones.
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