XLU - US Stocks Pause As Economic Engine Cools Tesla Sells Off Oil Rally Tests Goldilocks Scenario: What's Driving Markets Friday? | Benzinga
Friday saw a positive start for U.S. stocks, buoyed by relatively moderate job market data, capping off a week marked by not-too-hot and not-too-cold economic indicators, cementing expectations for the end of Fed rate hikes.
Yet the initial optimism for a “Goldilocks” scenario was short-lived as renewed economic concerns caused stocks to trim gains at midday trading. With rising unemployment and declining wage growth, investors are concerned that an economic slowdown will reduce consumer spending, resulting in lower profits for U.S. corporations.
Tesla Inc. (NASDAQ:TSLA) fell over 4% as Elon Musk slashed prices for the Model S and Model X by approximately 14% and 21%.
Oil prices continue to rise on optimism of a Chinese economic stimulus, while oil producers maintained their pledge to keep supplies tight. WTI-grade crude jumped 2% to $85, the highest since November 2022.
Cues From Friday’s Trading:
On Friday, major indices trimmed gains after the open, with the exception of small caps. Both the S&P 500 and the Dow Jones managed to hold flat, while the Nasdaq 100 fell 0.3%. The Russell 2000 rose 1.1%.
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