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Traders work the floor of the New York Stock Exchange.
NYSE
S&P 500 futures ticked were slightly lower Friday after the broad market benchmark briefly climbed above 5,500 for the first time.
S&P 500 futures inched lower by 0.1%, while futures tied to the Dow Jones Industrial Average fell 65 points, or 0.15%. Nasdaq 100 futures hovered near the flatline.
The S&P 500 closed 0.25% lower on Thursday. At its highs of the day, the broad market index was up by as much as 0.34%, reaching 5,505.53. The Nasdaq Composite fell 0.79%, also after hitting an all-time high earlier in the day. The 30-stock Dow was the outlier of the three major averages, rising nearly 300 points, or 0.77%, for its best day this month.
Nvidia fell another 1.5% before the bell, looking poised to build on a 3.5% loss from Thursday. Nonetheless, the chipmaker is still up more than 160% year to date, and it briefly beat Microsoft as the most valuable public company on Tuesday.
While some signs of an overextended market are appearing, it isn’t clear yet whether the market has reached its limits on the artificial intelligence-fueled rally — which can’t continue its “meteoric rise,” said Jamie Cox, managing partner at Harris Financial Group.
“The good news is, reality does not mean markets crashing or having these big, massive draw downs,” he said. “It’s more of a rebalancing of the field a little bit, because the valuations of those companies have just gotten so far afield from the average stock that you probably would see some broadening, which has been long talked about.”
As of Thursday’s close all three major averages are on pace for weekly gains. The S&P 500 is tracking for a roughly 0.8% advance, while the Nasdaq is up 0.2%. The Dow is the outperformer, touting a 1.4% rise week to date.
Trading on Friday could also be more volatile than normal due to triple witching, the expiration of stock options, stock index options and stock index futures options.
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