WASHINGTON (dpa-AFX) - While the tech-heavy Nasdaq and the S&P 500 have moved lower over the course of the session, the narrower Dow remains in positive territory in afternoon trading on Friday.
Currently, the Dow is up 179.89 points or 0.5 percent at 38,291.37, but the S&P 500 is down 21.97 points or 0.4 percent at 5,213.51 and the Nasdaq is down 206.82 points or 1.2 percent at 16,530.26.
The Nasdaq continues to pull back off the record closing high set on Tuesday, as tech stocks such as AI darling Nvidia (NVDA) give back ground.
Computer hardware stocks have shown a substantial a substantial move to the downside, with the NYSE Arca Computer Hardware Index plunging by 4.1 percent after ending Thursday's trading at a record closing high.
Dell Technologies (DELL) is leading the sector lower, plummeting by 19.0 percent after reporting better than expected first quarter results but forecasting its gross margin will pull back roughly 150 basis points in 2025.
Significant weakness also remains visible among semiconductor stocks, as reflected by the 2.6 percent slump by the Philadelphia Semiconductor Index.
Chipmaker Marvell Technology (MRVL) is posting a steep loss after forecasting fiscal second quarter earnings slightly below analyst estimates.
Software stocks are also seeing considerable weakness, while retail stocks are turning in some of the market's worst performances outside the tech sector.
On the other hand, telecom stocks have shown a strong move to the upside along with utilities and energy stocks.
The initial strength on Wall Street came following the release of a highly anticipated Commerce Department report showing consumer prices in the U.S. increased in line with economist estimates in the month of April, while core consumer prices edged up by slightly less than expected.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent for the third straight month in April, matching economist estimates.
Meanwhile, the report said the core PCE price index, which excludes food and energy prices, crept up by 0.2 percent in April after rising by 0.3 percent in March. Economists had expected another 0.3 percent increase.
The annual rates of growth by the PCE price index and the core PCE price index were both unchanged from the previous month at 2.7 percent and 2.8 percent, respectively. The readings matched expectations.
The readings on inflation, which are said to be preferred by the Federal Reserve, were included in the Commerce Department's report on personal income and spending.
The Commerce Department said real personal spending, which excludes price changes, edged down by 0.1 percent in April after climbing by 0.4 percent in March.
'We are in a be-careful-what-you-wish-for moment because if slowing consumer spending leads to lower inflation and the Fed is able to cut slowly as a result then that will be good for markets,' said Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance.
He added, 'However, if consumer spending - and the economy - slows too quickly then corporate profits and stock prices will go down much more quickly than the Fed will be able to cut rates, so we would be careful at this point.'
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index jumped by 1.1 percent, while Hong Kong's Hang Seng Index declined by 0.8 percent.
Meanwhile, the major European markets all moved to the upside on the day. While the U.K.'s FTSE 100 Index rose by 0.5 percent, the French CAC 40 Index crept up by 0.2 percent and the German DAX Index closed just above the unchanged line.
In the bond market, treasuries are extending the rebound seen in the previous session in response to the inflation data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.4 basis points at 4.510 percent.
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