S&P 500 AND NASDAQ DROP AS INVESTORS WEIGH FED MOVES AFTER INFLATION DATA

The S&P 500 and the Nasdaq gave up early gains on Friday and were set to snap their five-week winning streaks, as investors evaluated the timing of rate cuts from the Federal Reserve following an inflation largely in line with estimates. After opening marginally higher, the indexes dropped to a two-week low, weighed by megacap growth names such as Alphabet, Amazon and Nvidia, which lost between 1.1 % and 2.6 %.

Technology led declines among the S&P 500 sectors, falling 1.5% and on track for its worst week in over a month, while the Philadelphia SE Semiconductor Index lost 2.6%. U.S. inflation tracked sideways in April, a worrying sign for the central bank that suggests the elevated pace of price increases could last longer than expected.

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