Wall Street ends in disorganized order, rates and Netflix weigh

(Reuters) – The New York Stock Exchange ended in mixed order on Friday, penalized by disappointing forecasts from Netflix and the restrictive posture of the Fed, while the results of American Express kept the Dow Jones afloat.

The Dow Jones index gained 0.56%, or 211.02 points, to 37,986.40 points.

The broader Standard & Poor’s 500 lost 43.89 points, or -0.88% to 4,967.23 points.

The Nasdaq Composite fell 319.49 points (-2.05%) to 15,282.01.

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The S&P and Nasdaq finished in the red for the sixth consecutive session, their longest streak of decline since October 2022.

Over the week, the S&P 500 recorded a drop of 3.05%, the largest since March 2023. The Nasdaq posted a decline of 5.52%, the largest since October 2022. The Dow Jones remained stable, recording only a small increase of 0.01%.

Netflix weighed in after unexpectedly announcing Thursday that it would no longer provide subscriber numbers, while its second-quarter revenue forecast missed expectations. The stock fell 9.9%.

On the other hand, the Dow Jones benefited from better-than-expected profits from American Express, whose shares advanced 6.23%.

Higher-than-expected inflation data, a labor market that remains robust, geopolitical tensions in the Middle East and restrictive comments from Federal Reserve officials, including Chairman Jerome Powell, have pushed market participants to reconsider downwards the central bank’s rate cut schedule.

“There’s nothing in the data that suggests we need to cut rates,” said Mike Dickson, head of research at Horizon Investments in Charlotte, North Carolina.

“In such a context (…) the more unfavorable the situation seems to be for a rate cut, the greater the profit growth,” he added.

(Written by Kate Entringer)

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