The S&P 500 opened little changed on Friday as investors paused following a run of record highs, weighing signals of slowing jobs growth and contained inflation that reinforced expectations of a Federal Reserve rate cut next week.
The benchmark index slipped less than 0.1%, while the Nasdaq Composite edged up 0.1% to hit a new record.
The Dow Jones Industrial Average declined 39 points, or 0.1%.
The muted session came a day after strong gains, when the Dow jumped more than 600 points to finish above 46,000 for the first time, while the S&P 500 added 0.9% and the Nasdaq climbed 0.7%, with all three benchmarks setting record closes.
Economic data this week presented a mixed picture. The consumer price index rose 0.4% in August, exceeding forecasts for a 0.3% gain, though the annual rate matched expectations at 2.9%.
Meanwhile, weekly jobless claims increased by 27,000 to 263,000, the highest level since October 2021 and well above projections for 235,000.
For the week, the major averages are on track to post strong advances. The S&P 500 gained about 1.6% and is set for its best weekly showing since early August, marking its fifth positive week in six.
The Nasdaq is also on pace for a second straight weekly gain, while the Dow is positioned to break a two-week losing streak.
Friday is shaping up to be an active day for initial public offerings, with several companies set to debut on US exchanges.
Crypto exchange Gemini Space Station, led by Cameron and Tyler Winklevoss, has priced its IPO at $28 per share, valuing the firm at roughly $3.3 billion.
Media reports indicate strong demand for the offering.
Gemini will be joined on the market by Black Rock Coffee Bar, Via Transportation, and Legence, all of which are also scheduled to begin trading on Friday.
Markets looking at monetary policy decisions next week
As the week draws to a close, attention is shifting to a series of key central bank decisions scheduled for next week, with monetary policy expected to dominate market sentiment.
The US Federal Reserve and the Bank of Canada will announce their rate decisions on Wednesday, followed by Norway’s Norges Bank and the Bank of England on Thursday.
On Friday, the Bank of Japan will deliver its decision.
Markets widely expect the Fed to lower rates by 25 basis points.
According to Fed Fund Futures, there is a 90.4% probability of such a move, with the remaining odds reflecting the possibility of a deeper 50 basis point cut.
Futures pricing also suggests that investors anticipate two more rate cuts later this year, one in October and another in December.
Analysts expect market focus to shift quickly from the September cut to the Fed’s forward guidance, including its updated economic projections, the new dot plot, and Chair Jerome Powell’s press conference.
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