U.S. stocks ended lower on Friday on a week that saw the Fed putting a halt to interest rate hikes and fresh data that showed easing inflation. All three major indexes ended in negative territory. Friday’s decline, however, didn’t derail the Nasdaq and S&P 500 from extending their weekly gains.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) declined 0.3% or 108.94 points to finish at 34,299.12 points.

The S&P 500 slid 0.4% or 16.25 points to close at 4,409.59 points. Technology and communication services stocks were the worst performers.

The Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) each declined 0.8%. The Utilities Select Sector SPDR (XLU) gained 0.5%. Eight of the 11 sectors of the benchmark index ended in negative territory.

The tech-heavy Nasdaq slipped 0.7% or 93.25 points to end at 12,689.57 points.

The fear-gauge CBOE Volatility Index (VIX) was down 6.62% to 13.54.

Investors Weigh Remarks from Fed Officials

Stocks ended slightly lower on Friday to wrap up an eventful week that saw the Fed finally putting a pause on interest rate hikes after 10 straight increases over the past year. This came as inflation data also showed signs of easing.

Data released on Jun 13 showed the Consumer Price Index (CPI) eased in May to a rate of 4% on a year-over-year basis, the lowest level since March 2021. Impressive inflation data and a halt in interest rate hikes lifted investors’ sentiment that saw stocks rally earlier in the week.

However, the Fed said that two more interest rate hikes might follow this year as the central bank continues to bring down inflation to its target level of 2%.

On Friday, investors also weighed comments from two Fed officials. Richmond Fed President Tom Barkin said that despite signs of easing, inflation is still elevated and he needs to be convinced that inflation should slow at a faster pace in the near term before he could back an end to an increase in interest rates.

Separately, on the same day, Fed Governor Christopher Waller mentioned that the consequences resulting from a series of bank failures earlier in the year are expected to influence the central bank's decision regarding the extent of interest rate hikes.

Tech stocks took a beating on Friday with shares of Apple Inc. ((AAPL Quick QuoteAAPL - Free Report) ) declining 0.6%, while Netflix, Inc. ((NFLX Quick QuoteNFLX - Free Report) ) fell 3%. Netflix has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

In economic data released on Friday, an index provided by the University of Michigan showed that consumer sentiment increased to 63.9 in June from May’s reading of 59.2 to hit a four-month high. Consumer sentiment got a boost on slowing signs of inflation and an end to the crucial U.S. debt ceiling fight.

Weekly Roundup

Upbeat investors’ sentiment saw all three major indexes extending their weekly winning streak. The Dow ended the week 1.2% higher, recording its third straight week of gains.

The S&P 500 closed the week up 2.6% to record its fifth consecutive week of gains, and its longest weekly winning run since November 2021.

The Nasdaq gained 3.2%, registering its eighth straight week of gains and the longest since March 2019.