Stocks Slip Amid Fed's Rate Cut Plan

Wall Street's main indexes dipped on Friday following a rally driven by a significant interest rate cut from the Federal Reserve. While the S&P 500 and the Dow approached record highs, a majority of the S&P 500 sectors saw declines, especially industrial stocks. Nike surged after appointing a new CEO.

Wall Street's main indexes slipped on Friday as investors held back after a rally in the previous session sparked by an oversized interest rate cut by the Federal Reserve. The Dow Jones Industrial Average fell 91.67 points, or 0.23%, to 41,933.52, the S&P 500 lost 14.32 points, or 0.25%, to 5,699.32, and the Nasdaq Composite lost 19.62 points, or 0.10%, to 17,994.36. Eight out of the 11 S&P 500 sectors traded lower.

Industrial stocks sank to the bottom with a 1.1% loss, while utilities bounced back with a 1.7% gain after three sessions of losses. Rate-sensitive growth stocks were mixed; Alphabet and Apple gained over 0.4% each, while Tesla slid 1.3%. Semiconductor companies Advanced Micro Devices and Qualcomm were down over 0.5% each, sending the Philadelphia SE Semiconductor index 1% lower.

Nike jumped 7.5% after announcing that former senior executive Elliott Hill will rejoin the company to succeed John Donahoe as president and CEO. The S&P 500 and the Dow closed at all-time highs on Thursday, with the Dow settling above 42,000 points. Traders see a 60.4% probability of a 25 bps cut in November, according to CME Group's FedWatch tool.

(With inputs from agencies.)