The stock market saw major indexes dip from their highs in morning trade on Friday after the latest inflation reading came in as expected. Despite an earnings setback for Dell, investors were optimistic about positive reports from retail giants Gap and Nordstrom.
Lower interest rates helped small caps outperform early in the trading session, with the Russell 2000 up 0.3%. The Dow Jones Industrial Average also saw a slight gain. However, the S&P 500 dropped 0.4% and the Nasdaq composite lost 1%.
Dell experienced a 20% drop in its stock price after a weak earnings outlook, despite better than expected revenue. On the other hand, Gap saw a significant increase of over 21% after raising its full-year operating income forecast. Nordstrom also delivered positive news with accelerated revenue growth in the last quarter.
Donald Trump’s stock, Trump Media & Technology Group, declined more than 5% following legal troubles for the former president. Meanwhile, Salesforce tried to recover after a recent earnings sell-off, with advancing stocks outnumbering decliners on both the Nasdaq and NYSE.
In other economic news, personal spending increased by 0.2% in April, slightly below estimates. Security software stocks saw some volatility, with Zscaler jumping early in the session after positive earnings but fading gains later on. CrowdStrike also experienced ups and downs, falling below its 50-day moving average.
Overall, the stock market showed signs of resilience amidst the various developments and investors remained watchful for potential volatility as the month came to a close.
