US stocks were stagnant on Friday afternoon as Wall Street paused on the run towards bullish milestones. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite were all holding steady, with the Dow flirting with the key 40,000 level. Despite this, all indices were on track for weekly gains.
The momentum in the stock market hit a snag following comments from Fed officials indicating that rates are likely to stay high for an extended period. This tempered expectations of a rate cut in September, which had been boosted by positive inflation data.
With a light economic and corporate calendar on Friday, there were limited catalysts for the Dow to push past 40,000. However, the S&P 500 and Nasdaq had their sights set on new records.
The focus remained on statements from Fed officials, with US Federal Reserve Governor Michelle Bowman emphasizing that the central bank has not made progress in curbing inflation this year. She also mentioned willingness to raise rates if necessary.
Meanwhile, GameStop shares plummeted over 25% after the company announced expectations of a decline in first-quarter sales as consumers shift towards online shopping. On the other hand, Reddit shares surged after signing a partnership with OpenAI, integrating content from its forums into ChatGPT.
The stock market was also reacting to news that Fed Chair Jerome Powell had tested positive for COVID-19, prompting him to forego in-person appearances and instead deliver remarks through a pre-recorded video.
Overall, the day saw mixed movements in individual stocks, but the broader market indices were relatively stable as investors weighed various factors impacting the market's direction.