Dow Jones DJIA Finally Breaks Higher, Nasdaq Slips As Meta Stock Weighs on Tech
Markets reacted to a lower-than-expected US producer inflation report and a tech slump led by Meta, resulting in a tumultuous session...
Quick overview
- U.S. producer inflation data came in lighter than expected, increasing the likelihood of Federal Reserve rate cuts later this year.
- Meta Platforms' stock fell 2.35% after delaying the launch of its large language model due to internal performance concerns.
- The Dow Jones closed up 271.69 points, while the NASDAQ ended in the red, reflecting mixed investor sentiment amid tech weakness.
- Despite Friday's pullback, the NASDAQ is still up 6.60% for the week, indicating strong overall momentum in the tech sector.
Live DOW Chart
Markets reacted to a lower-than-expected US producer inflation report and a tech slump led by Meta, resulting in a tumultuous session in which equities reversed and bonds rose.
PPI Data Eases, Rate Cut Odds Tick Higher
April’s Producer Price Index (PPI) came in slightly softer than anticipated, nudging market expectations toward a higher probability of Federal Reserve rate cuts later this year. Most economic releases remained broadly in line with forecasts. U.S. Treasury yields fell by 7 to 11 basis points across the curve, offering relief to fixed income markets.
Meta Delays LLM Launch, Stock Slides
Meta Platforms suffered a setback after it delayed the release of its much-anticipated large language model, Llama 4 “Behemoth.” Internal concerns about the model’s performance and its marginal improvements over prior versions led to the pause. The stock dropped 2.35%, closing at $643.88—a $15.48 decline from the previous session’s close. Meta had earlier risen by $3.89 before reversing lower.
Dow Breaks Resistance, NASDAQ Wavers, Ends in the Red
Tech weakness weighed on broader indices. The NASDAQ, which had gained as much as 60.41 points earlier in the day, reversed course and closed down by 34.49 points (or 0.18%) at 19,112.32. At session lows, the index was off by as much as 179.03 points, underscoring investor caution amid mixed signals.
Market Close Summary – Strong Weekly Gains Despite Tech Pullback
Dow Jones Industrial Average
- Closed up +271.69 points (+0.65%) at 42,322.75.
- On track for a 2.60% weekly gain, reflecting broad investor confidence and strength in industrial and cyclical sectors.
S&P 500 Index
- Rose +24.35 points (+0.41%) to 5,916.92.
- Registered a 4.54% gain for the week, marking one of its strongest weekly performances in recent months, supported by energy, financials, and healthcare stocks.
NASDAQ Composite
- Declined -34.49 points (-0.18%) to 19,112.32, reversing earlier session gains.
- Despite the day’s weakness—primarily due to a drop in major tech names like Meta—the NASDAQ is still up 6.60% for the week, underscoring strong overall tech momentum earlier in the week.
Conclusion: Fed Cut Odds Rise After PPI Miss; Meta Weighs on Tech
U.S. equity markets closed mixed on the day but booked impressive weekly gains, with the NASDAQ leading on a weekly basis despite a Friday pullback. The S&P 500 also posted a robust advance, reflecting broad-based strength. Investor sentiment remained resilient, buoyed by cooling inflation data and renewed hopes for eventual Fed rate cuts. The late-week tech dip may be a pause, not a reversal, as optimism continues to build heading into summer.
Dow Jones Industrial Average Live Chart
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