WALL ST RETREATS AFTER RALLY AS MARKETS GAUGE HAWKISH FED AND COOLING ECONOMY

U.S. stock indexes fell on Friday, with the Nasdaq and the S&P 500 slipping from record highs as investors booked profits and weighed hawkish Federal Reserve projections against slowing economic data. Limiting losses on the tech-heavy Nasdaq, Adobe jumped 14.5 % and was on track to mark its biggest one-day jump in four years after the company raised its annual revenue forecast on more demand for its AI-powered software.

The Nasdaq and S&P 500 were set for their first session in the red this week, after both notching four consecutive record closing highs."What we're seeing is some mild profit taking, we've had a good run up and set record highs almost every day this week," said Peter Cardillo, chief market economist at Spartan Capital Securities. The week's strong performance came as markets persisted with expectations of a September start to policy easing - seeing an over 70% chance of a cut at that meeting, as per the CME's FedWatch tool - while traders are pricing in two cuts by year-end.

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