US stocks fell on Friday, marking a pullback from all-time highs as turmoil in Europe shook confidence and Elon Musk's pay package put Tesla ( TSLA ) in the spotlight.
The Dow Jones Industrial Average fell about 0.5% and led the decline, while the S&P 500 lost 0.4%. The tech-heavy Nasdaq Composite Index was down 0.3%.
Stocks lost momentum after the benchmark S&P 500 and Nasdaq posted record closes for the fourth day in a row, driven by strengthening in the technology sector. Both indices are still on track for weekly gains.
The surprise drop in wholesale price pressures is encouraging to investors who are betting on two interest rate cuts this year, as the decline is likely to be reflected in the upcoming PCE inflation reading monitored by the Federal Reserve.
However, the Fed this week cut its forecast for rate cuts from three to one in 2024, prompting markets to continue to puzzle and leaving stocks vulnerable to mood swings. Strengthening in the technology sector has fueled broader gains, setting the S&P 500 and Nasdaq up for weekly gains for now. Waima so the Dow Index faced losses for the week,
Meanwhile, Tesla shares rose around 2% on Friday morning after shareholders re-approved CEO Elon Musk's $56 billion pay package. Despite opposition from some big investors, 77% of the votes passed, the EV maker said.
