Wall Street ended the week on a weaker note after four consecutive days of gains, with the Dow rising nearly 2.8%, the S&P 500 up 2.4%, and the Nasdaq up almost 2.7%. Market optimism surged mid-week following signals from the Fed indicating three potential interest rate cuts this year, despite some inflation concerns. Nike’s stock declined by more than 6% due to a sluggish outlook and slowing sales in China, leading the company to embark on a $2 billion cost-cutting restructuring plan over the next three years.
Additionally, Foot Locker saw an upgrade from Citi to neutral from sell, citing potential benefits from the new Nike distribution strategy. Lululemon’s shares fell by 13% following weak guidance and slowing growth in North America, while FedEx delivered a strong quarter despite stagnant revenue growth, with shares increasing by 11%. Nvidia also experienced a positive week, with UBS raising its price target on the stock to $1,000 and highlighting the company’s potential for increased demand from global enterprises and sovereigns.
Finally, there was fallout from a Justice Department lawsuit against Apple, with shares remaining steady after a 4% decline. Starbucks faced challenges in key markets globally, prompting caution on the stock until financial improvements are demonstrated. Overall, the week’s market movements highlighted a mix of optimism, challenges, and potential growth opportunities across various sectors.