Stock Market News Today: Wall Street trades mixed after consumer sentiment data (SP500)

U.S. stocks on Friday tempered their slight advance to trade mixed, after economic data showed consumer sentiment falling to a six-month low amid rising inflation expectations.

Market participants also received remarks from a host of Federal Reserve speakers that largely struck a cautious tone.

The tech-heavy Nasdaq Composite (COMP:IND) slipped 0.07% to 16,335.06 points in morning trade, as most members of the “Magnificent 7” club declined. The benchmark S&P 500 (SP500) was marginally up 0.08% to 5,218.45 points, while the blue-chip Dow (DJI) climbed 0.13% to 39,439.25 points.

Of the 11 S&P sectors, six were in the red, led by Communication Services. Technology and Financials topped the winners.

Wall Street had ended higher in the previous session, with the Dow (DJI) logging a seven-day win streak. The advance had been driven by initial jobless claims rising to their highest level in more than eight months, suggesting weakness in the labor market and leading to traders upping their bets for Fed interest rate cuts.

However, on Friday, data from the University of Michigan again clouded the picture on monetary policy. The University’s gauge of consumer sentiment declined to 67.4 in May, its lowest level since November 2023. Meanwhile, year-ahead inflation expectations ticked up to 3.5% from 3.2% in April.

U.S. Treasurys fell after the report as the data rekindled whispers of stagflation, pushing up yields. The longer-end 30-year (US30Y) and 10-year yields (US10Y) were both up 4 basis points each to 4.65% and 4.50%, respectively. The shorter-end more rate-sensitive 2-year yield (US2Y) was also up 4 basis points to 4.86%.

Pantheon Maco’s Ian Shepherdson noted that a change in the way the University of Michigan collects its survey responses probably led to the tick up in year-ahead inflation expectations.

“Amused by Treasuries selling off (because) Michigan survey shows slightly higher inflation expectations. The survey is switching to web from phone, and the U Mich people have noted that web responders consistently have slightly higher inflation expectations. No big deal,” Shepherdson said on X (formerly Twitter).

See live data on how Treasury yields are doing across the curve at the Seeking Alpha bond page.

Investors also received comments from some Fed speakers. Governor Michelle Bowman, speaking at a bankers association annual meeting in Texas, said that the central bank was “proceeding carefully and deliberately” to achieve its 2% inflation goal. Dallas Fed President Lorie Logan, speaking at a separate bankers association annual meeting in La., said that it was too early to think about cutting interest rates.

The Fed docket also features Minneapolis President Neel Kashkari, Chicago President Austan Goolsbee and vice chair for supervision Michael Barr.

Turning to active stocks, Novavax (NVAX) shares more than doubled in value after the vaccine maker removed its going concern doubt following a licensing agreement with French drugmaker Sanofi (SNY) to promote its COVID-19 shot. Novavax (NVAX) also delivered quarterly results that showed a narrower loss and a solid rise in revenue.

Akamai Technologies (AKAM) slumped and was the top percentage loser on the S&P 500 (SP500), after the cloud services provider issued disappointing current quarter guidance.

U.S.-listed shares of Taiwan Semiconductor Manufacturing (TSM) rose nearly 5% after the world’s largest contract chipmaker announced a nearly 60% surge in April revenue.