US stocks fell back on Friday, stepping away from recent record highs amid unsettling news from Europe and developments regarding Tesla’s (NASDAQ:TSLA) leadership compensation.
The Dow Jones Industrial Average led the pullback with a decline of 0.3%, while the S&P 500 and the tech-heavy Nasdaq Composite also experienced slight losses.
Despite this, both the S&P 500 and Nasdaq are still poised for weekly gains after reaching consecutive record closes driven by strong performance in tech sectors.
A recent easing in wholesale price pressures had initially lifted investor spirits, fostering hopes for dual interest rate cuts this year. However, the Federal Reserve has revised its rate cut projections down to just one for 2024, which has injected some caution into the market, making stocks more sensitive to changes in sentiment.
Despite the overall market retreat, technology stocks continue to drive gains.
Tesla shares dropped nearly 2% after shareholders approved a controversial pay package for CEO Elon Musk, with 77% supporting despite some dissent among major investors. This decision placed Tesla prominently in market discussions.
European markets added to the cautious tone, with the STOXX Europe 600 index heading towards its worst week since October, driven by worries about potential political shifts in France’s snap election.
On a positive note, Adobe (NASDAQ:ADBE) saw its shares surge by approximately 15% following a positive sales forecast bolstered by its AI initiatives, contrasting with the broader market downturn.
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