Tech stocks’ decline overshadowed market performance on Friday, despite positive inflation news.
Tech stocks dominated market movements on Friday as most U.S. stocks rose following a report indicating stable inflation trends. However, drops in tech giants kept indexes in check.
The S&P 500 slipped 0.1% in afternoon trading, potentially closing its first losing week in six, despite the majority of Tech stocks within the index experiencing gains.
The Nasdaq composite took the biggest hit, sliding 0.9%, as Tech stocks faltered with little more than a half-hour remaining in trading.
Meanwhile, the Dow Jones Industrial Average, with less emphasis on Tech, managed to rise by 285 points, or 0.7%.
One notable decliner was Dell, plunging 17.9% despite meeting analysts’ profit forecasts for the latest quarter. The Tech company had already seen its stock soar by 122% in 2024, setting high expectations. Analysts expressed concerns about Dell’s ability to maintain profit margins.
Nvidia also saw a second consecutive day of losses, dropping 1.1% as its recent momentum slowed following a more than 20% increase since its impressive profit report last week. Nvidia, along with Microsoft’s 1.7% drop and Amazon’s 2.5% decline, weighed heavily on the S&P 500.
Despite the Tech turmoil, non-Tech stocks performed better after the latest inflation data met expectations, leaving the question of when Wall Street might see the lower interest rates it desires. 
This stability in inflation could bolster the Federal Reserve’s confidence in a sustainable decline toward its target, a necessary condition before reducing its main interest rate.
However, concerns persist that holding rates too high for too long could hinder economic growth and lead to a recession.Following the report, the yield on the 10-year Treasury fell to 4.50% from 4.55% late Thursday, having reached 4.60% earlier in the week.
The two-year Treasury yield, closely tracking expectations for Fed action, slipped to 4.88% from 4.93%.Few expect the Federal Reserve to cut interest rates at its upcoming meeting in less than two weeks, but traders are betting on an 84% chance of at least one cut by year-end, based on CME Group
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