FX.co ★ Nasdaq, S&P 500 Bounce Into Positive Territory But Dow Remains In The Red

After a brief period of weakness early on Friday, the stock markets have experienced a resurgence. Specifically, the Nasdaq and S&P 500 have recovered from previous session lows and have now moved into a positive zone.

At present, the Nasdaq has increased by 62.93 points (or 0.4%), standing at 16,464.76, while the S&P 500 has risen by 3.73 points (or 0.1%), reaching 5,245.26. Conversely, the Dow, a narrower index, hasn't shared in this reversal and the blue chip index has dropped 170.38 points (or 0.4%), down to 39,610.99.

The initial dip in Wall Street was partly a result of profit-taking, as some traders opted to capitalise on the recent market strength. Despite an early rally on Thursday, the major averages lost ground but still concluded the session with new record closing highs.

Selling pressure remained generally low as traders maintained a positive outlook on interest rate prospects due to the Federal Reserve's recent monetary policy announcement. Although there is uncertainty around the timing of the first rate change, projections now suggest a 66.5% chance of a quarter point rate cut in June, as per CME Group's FedWatch Tool.

The turnaround in the market was led by chipmaker Nvidia (NVDA), who surged by 3.5%. This AI firm, which has been a recent driving force in Wall Street trading, is expected to close the day at a record high.

Delivery company FedEx's (FDX) shares have also risen 7.1% after the company's fiscal third-quarter results exceeded expectations and they announced a $5 billion share repurchase program. However, athletic apparel retailer Lululemon saw a 15.2% drop in shares after releasing better than expected fiscal fourth quarter results and disappointing guidance. Additionally, athletic wearable company Nike's shares fell by 5.8% after although they reported fiscal third quarter earnings and revenues that exceeded estimates but showed slowing growth in China.

Despite the general recovery in the markets, telecom stocks continued to slump, with the NYSE Arca North American Telecom Index falling 1.3%. Significant weakness was also prevalent among banking stocks, pushing the KBW Bank Index up by 1.2%. Commercial real estate, gold, and brokerage stocks also experienced a continued downturn, while semiconductor stocks improved.

Looking globally, Friday's trading performance in the Asia-Pacific region was mixed. Japan's Nikkei 225 Index increased by 0.2%, while China's Shanghai Composite Index fell by 1.0% and Hong Kong's Hang Seng Index dropped by 2.2%. The leading European markets also reported mixed results, with France's CAC 40 Index falling 0.3%, Germany's DAX Index rising 0.2%, and the UK's FTSE 100 Index increasing by 0.6%.

In bond trading, treasuries experienced a considerable upswing after ending the previous session flat. As a result, the yield on the benchmark ten-year note, which inversely correlates with its price, fell by 5.5 basis points to 4.216%.