US markets end mostly in red on Friday amid profit taking

21 Sep 2024 Evaluate

The US markets ended volatile trading session mostly in red on Friday amid profit taking, with some traders cashing in on the significant rally seen during trading on Thursday. The major averages climbed well off their worst levels of the day before eventually closing narrowly mixed. Stocks moved sharply higher on Thursday amid a positive reaction to the Federal Reserve's decision to slash interest rates by half a percentage point. However, selling pressure waned over the course of the session as traders seemed reluctant to make more significant moves as they question what the next catalyst for the markets will be now that the Fed's first rate cut is in the rearview mirror. A lack of major U.S. economic data may also have kept some traders on the sidelines ahead of the release of several key reports next week.

On the sectoral front, despite the recovery attempt by the broader markets, transportation stocks continued to see substantial weakness. A steep drop by shares of FedEx (FDX) weighed on the sector, with the delivery giant plunging by 15.2 percent after reporting disappointing fiscal first quarter earnings and lowering its full-year guidance. Housing stocks also showed a significant move to the downside on the day, resulting in a 2.3 percent slump by the Philadelphia Housing Sector Index. Steel and semiconductor stocks also saw considerable weakness, while gold and computer hardware stocks showed strong moves to the upside.

Nasdaq fell 65.66 points or 0.36 percent to 17,948.32 and S&P 500 was down by 11.09 points or 0.19 percent to 5,702.55, while Dow Jones Industrial Average rose 38.17 points or 0.09 percent to 42,063.36.