Market Dips Amid Inflation and Economic Concerns
Stocks closed lower on Friday afternoon, marking the third consecutive day of declines for major indexes. Investors were digesting key reports on inflation and consumer sentiment, which heightened worries about the U.S. economy.
The S&P 500 and the tech-heavy Nasdaq Composite both fell sharply, while the Dow Jones Industrial Average also declined.
According to the Personal Consumption Expenditures (PCE) report released Friday, core inflation, which excludes volatile food and energy prices, rose more than anticipated last month. This reading is fueling concerns that the U.S. economy could be headed for a period of high inflation and slow growth, particularly once the impact of tariffs is felt in the coming months.
Consumer sentiment data from the University of Michigan was also worse than expected, reaching its lowest level since late 2022. Inflation expectations also surged to their highest level since 2022. This report is another indication that consumer confidence is waning, which threatens to slow spending and stall economic growth.
Company-Specific News
Lululemon Shares Plummet
Lululemon Athletica (LULU) shares experienced a significant drop of 15%, leading S&P 500 decliners. This was due to disappointing guidance from the apparel retailer, which cited concerns about inflation and economic conditions as factors slowing consumer spending.
RocketLab Gains on Space Force Contract
Rocket Lab USA (RKLB) shares saw a rise on Friday after being selected by the U.S. Space Force for its National Security Space Launch (NSSL) program. Rocket Lab will compete for missions under the program, with the stock price jumping over 7% in early trading.
CoreWeave IPO
CoreWeave, a cloud computing company backed by Nvidia (NVDA), launched its initial public offering (IPO) on Friday. The value of the offering was below the initially expected range, raising $1.5 billion.
AppLovin Rebounds; Investigation Initiated
AppLovin (APP) shares recovered somewhat after losing ground the previous day. The company stated that it has hired an attorney to investigate recent reports from short sellers. The company has been the subject of multiple short seller reports in the last month.
W.R. Berkley Surges After Japanese Investment Announcement
Shares of W.R. Berkley Corporation (WRB) led the S&P 500 gainers. This followed the announcement that Japan’s Mitsui Sumitomo Insurance (MSI) will acquire a 15% stake in the company.
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