Stocks are hovering near record levels as Wall Street approaches the end of another successful week. The S&P 500 remained relatively unchanged in early trading Friday, positioning itself for a fourth consecutive week of gains. The Dow Jones Industrial Average edged up by 24 points after briefly surpassing the 40,000 mark for the first time on Thursday. The Nasdaq composite was flat. Meanwhile, Reddit saw a jump in its stock after announcing a partnership with OpenAI, which will integrate Reddit’s content into ChatGPT and collaborate as an advertising partner. GameStop and AMC Entertainment continued to lose some of their dramatic gains from earlier in the week.
Wall Street was off to a slow start early Friday, a day after the Dow Jones Industrial Average briefly exceeded the 40,000 mark for the first time.
Futures for both the Dow and the S&P 500 were steady before the market opened on Friday, maintaining a strong week for stocks.
Meme stocks continued to retreat from their substantial gains earlier in the week. GameStop fell 17% in premarket trading after announcing a decline in net sales for the first quarter. AMC Entertainment slid 7.8%. Despite more than doubling in the first two days of the week, both stocks are on track for double-digit losses for the third consecutive day.
Reddit surged 10% in premarket trading after announcing a collaboration with ChatGPT. This partnership will provide OpenAI access to Reddit’s data API, while Reddit users and moderators will gain access to new AI-powered features. Additionally, OpenAI will become a Reddit advertising partner.
Next week, the earnings season will culminate with reports from major retailers, including Macy’s, Lowe’s, and Target.
Recent strong earnings and new inflation data have raised hopes that the Federal Reserve might cut its main interest rate at least once this year. The Fed has maintained its federal funds rate at the highest level in over two decades. Early-year reports on inflation had cast doubt on potential rate cuts, but more encouraging data has since revived these hopes.
Chinese stocks rebounded following new measures to revive the struggling property market. China’s central bank announced reductions in required down payments for housing loans and cuts in interest rates for first and second home purchases. These measures came after reports of ongoing economic weakness, particularly in the real estate sector.
Hong Kong’s Hang Seng rose 1.1% to 19,591.29, and the Shanghai Composite Index increased by 1% to 3,154.03. Property developers, including China Evergrande Group and China Vanke, were among the biggest gainers, with shares jumping nearly 18% and 19.6%, respectively.
However, while these efforts to boost property sales were welcomed in China, they could complicate inflation control efforts elsewhere if they increase commodity prices.
In Tokyo, the Nikkei 225 declined 0.3% to 38,787.38, and Australia’s S&P/ASX 200 dropped 0.9% to 7,814.40. South Korea’s Kospi fell 1% to 2,724.62.
In midday European trading, Germany’s DAX lost 0.3%, France’s CAC 40 shed 0.5%, and Britain’s FTSE 100 declined 0.4%.
Benchmark U.S. crude oil rose by 4 cents to $78.78 per barrel, while Brent crude, the international standard, dipped 2 cents to $83.25 per barrel. The U.S. dollar strengthened to 155.86 Japanese yen from 155.40 yen, and the euro slipped to $1.0840 from $1.0868.
On Thursday, the Dow Jones dipped 0.1% to 39,869.38, the S&P 500 fell 0.2%, and the Nasdaq composite dropped 0.3%. All three indices had reached all-time highs on Wednesday.
Featured Image: Freepik @ wirestock
