US stocks concluded a remarkable week on a somewhat lackluster note, yet investors on Wall Street are likely celebrating one of the strongest weeks of the year for markets.
On Friday, the Dow Jones Industrial Average experienced a dip of 306 points, marking a 0.7% decline.
Investors had anticipated that the index would surpass the significant 40,000 threshold level, a milestone it achieved twice during premarket trading. However, it fell short of achieving this milestone during regular trading hours. Nonetheless, the blue-chip index recorded its most impressive week since December. Both Wednesday and Thursday witnessed all three major indexes closing at record highs, with the tech-heavy Nasdaq setting a third record on Friday at 16,428.82.
The S&P 500 witnessed a minor decline of 0.1% on Friday, while the Nasdaq edged 0.2% higher.
A surge in artificial intelligence stocks propelled two new record highs across the three major indexes this week, alongside fresh projections from the Federal Reserve indicating that the US economy could witness three interest rate cuts before the year concludes.
In corporate developments, it was a challenging day for the performance wear sector.
Shares of Lululemon plummeted nearly 15.8% after the company issued disappointing forward guidance, marking its worst day since March 2020. Similarly, Nike experienced a 6.9% decline after reporting slowing sales in China and adjusting its forward guidance.
Reddit encountered a downward adjustment on its second day of trading, with shares declining approximately 8.5% after surging 48% following its debut on the New York Stock Exchange.
Despite facing a Department of Justice antitrust lawsuit, Apple investors remained relatively unfazed, with shares edging about 0.5% higher.
Investors also approved a deal on Friday to transform Truth Social owner Trump Media into a publicly traded company.
The approval from shareholders represents a significant milestone for a long-awaited merger, poised to generate a multibillion-dollar windfall for former President Donald Trump amidst significant financial and legal pressures. However, the approval is unlikely to alleviate his legal challenges.
According to preliminary vote totals announced during the meeting, a majority of Digital World Acquisition Corp. shareholders voted in favor of the merger with Trump Media. The companies anticipate the merger to conclude as early as next week.
However, not all shareholders displayed approval, as Digital World Acquisition Corp. saw a decline of 13.7% on Friday.