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RATE CUT HOPES BATTLE TECH CONCERNS

Rising hopes of more interest rate cuts this year battled with ongoing concerns about the impact of AI on software and other companies to make for a choppy day of trading on Friday, with the main Wall Street indexes ending mixed and lacking conviction.

Traders ramped up bets that the Federal Reserve could cut rates three times this year after data showed softer than expected consumer price inflation in January. Fed funds futures now show 64 basis points of cuts priced in by December, up from 59 basis points late on Thursday.

But market participants also remain nervous that rapidly developing AI will dent the bottom line of software and other companies vulnerable to the technology.

The Nasdaq Composite .IXIC was the worst-performing major index, ending down 0.2%, while the Dow Jones Industrial Average .DJI and S&P 500 .SPX eked out minor gains.

Communication Services .SPLRCL was the weakest sector, while Utilities .SPLRCU and Real Estate .SPLRCR outperformed.

The Dow Jones Utilities Average .DJU, S&P 500 Utilities and S&P 500 Staples .SPLRCS scored record closes.

Here is Friday’s closing market snapshot:

(Karen Brettell, Terence Gabriel)

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EARLIER ON LIVE MARKETS:

A NEW ERA FOR INDUSTRIALS? CLICK HERE

INDIVIDUAL INVESTOR BEARS LEAP - AAII CLICK HERE

LUCKY 13: CORE CPI NUDGES CLOSER TO FED INFLATION TARGET CLICK HERE

US STOCKS STRUGGLE EARLY, YIELDS UNDER PRESSURE CLICK HERE

US STOCK FUTURES FIRM UP SLIGHTLY, YIELDS SLIP, AFTER SOFT CPI CLICK HERE

GRIT IN THE OYSTER - GOLDMAN ON CENTRAL BANK DISSENTERS CLICK HERE

AI DISRUPTION IS NOT A NEGATIVE - JEFFERIES CLICK HERE

LUXURY STRUGGLES ON L'OREAL RESULTS CLICK HERE

EUROPE BEFORE THE BELL: NOT ANOTHER AI-INDUCED SELLOFF CLICK HERE

MORNING BID: NO LONGER THE APPLE OF THEIR EYE CLICK HERE