4:10pm: Wall Street ends mixed
Wall Street ended Friday on a mixed note, with the major averages fluctuating throughout the session as investors continued to digest the Federal Reserve's latest policy move.
The Dow Jones Industrial Average fell 96 points, or 0.2%, to close at 51,682, while the S&P 500 added 12 points, or 0.2%, to 7,650. The Nasdaq Composite gained 104 points, or 0.4%, to 26,523.
The gains in technology stocks helped steady the broader market, but sentiment remained under pressure as the benchmark 10-year Treasury yield climbed back above 5%.
Investors were also weighing the Fed's first interest rate hike in three years, a move aimed at containing persistent inflation. The decision initially removed some uncertainty and prompted a brief relief bounce, but questions around the central bank's longer-term rate path have continued to weigh on equities.
Next week brings a handful of corporate earnings reports, with AutoZone due Tuesday, followed by Cintas, Paychex and General Mills on Wednesday. Costco and BlackBerry are scheduled to report Thursday.
3:30pm: Small cap wrap
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HIVE Digital Technologies Ltd (TSX:HIVE, NASDAQ:HIVE, FRA:YO0, BVC:HIVECO) said capital markets veteran Hubert Marleau has joined the board of its BuzzHPC high-performance computing subsidiary as it strengthens governance ahead of further expansion in Canada.
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Ocean Power Technologies Inc (NYSE-A:OPTT) said it completed a formally evaluated demonstration of its WAM-V 8 autonomous platform in challenging surf-zone conditions in North Carolina, generating data to support development of its larger 16- and 22-foot platforms.
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U.S. Global Investors (NASDAQ:GROW) CEO Frank Holmes argued in an op-ed that the growing use of inexpensive drones against oil infrastructure is disrupting diesel markets and changing the economics of air defense.
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Tertiary Minerals PLC (AIM:TYM, OTC:TTIRF, FRA:TMU) said drilling at its Mushima North project in Zambia has delineated a roughly 400-metre-long higher-grade silver-copper-zinc zone, with mineralisation extending beyond the current Exploration Target and remaining open at depth.
2:30pm: Market movers
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Ocean Power Technologies Inc (NYSE-A:OPTT) said it completed a formally evaluated demonstration of its WAM-V 8 autonomous platform in challenging surf-zone conditions at the US Army Corps of Engineers' Engineer Research and Development Center Field Research Facility in North Carolina, generating data to support development of its larger 16- and 22-foot WAM-V platforms.
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Wells Fargo downgraded Netflix Inc (NASDAQ:NFLX, XETRA:NFC) to "underweight" from "equal weight" and cut its price target to $57, citing weaker engagement and content concerns that could pressure margins and valuation.
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Xenon Pharmaceuticals shares fell 30% after the company voluntarily halted new enrollment in studies of azetukalner for major depressive disorder and bipolar depression following events consistent with the drug's known safety profile.
1:15pm: Fed tightening may continue
Deutsche Bank said Fed Chair Kevin Warsh's framing of the September rate hike points to a potentially higher terminal rate, with policy likely to remain restrictive as the central bank responds to a rising neutral rate.
The bank reiterated its baseline view for another 50 basis points of tightening, taking the federal funds rate to 4.375% by the end of the first quarter of 2027, while estimating roughly 40 basis points of upside risk based on reasonable scenarios for the neutral rate.
Warsh's comments "mostly leaned" toward the view that rates need to be sufficiently restrictive to bring inflation back to target, Deutsche Bank said, leaving the eventual peak in rates more open-ended.
11:30am: Buffet steps down
Berkshire Hathaway Inc (NYSE:BRK.B) ( Berkshire Hathaway Inc (NYSE:BRK.A) ) said Friday that Warren Buffett, 96, is stepping down as chairman and will become chairman emeritus, remaining a director as his son takes over the role.
Howard Buffett, 71, assumes the chairmanship immediately. He has served on Berkshire's board since 1993. Greg Abel continues as CEO, a role he has held since the start of the year.
"Greg runs the company; Howard will guard its culture and values," Warren Buffett wrote, spelling out the responsibilities underpinning the leadership transition.
Buffett, who has led Berkshire since 1965, endorsed Abel's performance, writing that his expectations were "sky high from the start" and that the executive had exceeded them.
10:00am: Stocks drift lower
US stocks headed lower on Friday, with the Dow and S&P 500 slipping while the Nasdaq was little changed as investors weighed oil prices, inflation concerns and the latest corporate news.
The Dow Jones Industrial Average fell 252 points, or 0.5%, to 51,526 shortly after the open. The S&P 500 was down 16 points, or 0.2%, at 7,622, while the Nasdaq was essentially flat at 26,416.
Oil prices provided some relief after easing below $100 a barrel, although crude edged higher in early trading Friday. WTI was around $101 a barrel as markets continued to assess supply risks stemming from the conflict in the Middle East.
"If we don't get a sustainable decline in oil prices, refined-product prices will remain elevated and continue to keep inflation expectations at uncomfortable levels," Swissquote senior analyst Ipek Ozkardeskaya said.
Ozkardeskaya warned that continued pressure on refined-product supplies from the Middle East and Russia could become a growing concern as global inventories and strategic reserves decline.
In corporate news, Warren Buffett is stepping down as chairman of Berkshire Hathaway, with his son Howard Buffett taking over the role. Greg Abel remains CEO.
Investors will also get fresh economic data later Friday, with August industrial production and capacity utilization due at 9:15 a.m. ET, followed by the August leading indicators report at 10 a.m.
Ahead of the bell
US stock futures edged higher on Friday morning as investors weighed the Federal Reserve's first interest rate rise in three years against mounting unease over the reach of artificial intelligence.
Futures on the Dow Jones Industrial Average rose 0.1%, the S&P 500 added 0.2% and the Nasdaq-100 climbed 0.4%.
The gains followed a rebound on Thursday, when tech stocks, softer oil prices and lower bond yields helped markets look past the Fed's expected 25 basis point hike.
Not everyone is convinced one move will do it, with JPMorgan chief Jamie Dimon warning: "It's not clear to me we've slayed inflation."
With oil back near $100 as the war in Iran nears its seventh month, the pressure on central banks is not easing.
