Dow Jones Today: Dow Hits Record High, Nasdaq Slips as Nvidia Slides

Stocks were mixed in midday trading Friday after a closely watched inflation report reinforced expectations that the Federal Reserve will continue cutting interest rates, while a downturn in shares of AI investor favorite Nvidia (NVDA) led a decline for chipmakers.

The Dow Jones Industrial Average was up 0.9% at a new record high, while the S&P 500 rose 0.1% and the Nasdaq Composite was down 0.3%. The major indexes finished higher Thursday, with the S&P 500 posting a record closing high, boosted by a rally for chip stocks and big gains for companies with exposure to the Chinese economy amid news of stimulus measures.

The U.S. stock market has recovered from an early-September selloff as investors are optimistic that the economy is headed for a soft landing and that the Fed will continue easing rates, after it reduced the influential fed funds rate last week for the first time in four years. Major indexes are on course to post gains for the month.

The Personal Consumption Expenditures index, which is the Fed's preferred measure of inflation, showed that annual inflation fell to 2.2% in August. That was down from 2.5% the month before and slightly lower than economists had expected. It also puts inflation closer to the Fed's 2% annual target, which is watching the data closely as it tries to ensure that rate cuts don't add to price pressures.

Among stocks on the move, Bristol-Myers Squibb (BMY) was up more than 3% after the company received FDA approval for a drug to treat schizophrenia. Costco (COST) was down about 2% after reporting earnings late Thursday, as revenue came in slightly below expectations.

Nvidia shares were down nearly 3%, along with the shares of several other large chipmakers, dragging down the Nasdaq. Other mega-cap technology companies were mixed, with Apple (AAPL) and Alphabet (GOOGL) rising while Microsoft (MSFT), Meta Platforms (META) and Amazon (AMZN) lost ground.

U.S.-traded shares of Chinese companies were rising once again Friday. The iShares MSCI China ETF (MCHI) was up about 1.5%, as conglomerate Alibaba Group Holding (BABA), PDD Holdings (PDD), parent of online marketplace Temu, and online retailer JD.com (JD) moved higher. Shares of Chinese companies and others with significant exposure to the country have risen this week as authorities have introduced a wide range of stimulus measures to boost China's economy.

Gold futures were down 1% at around $2,670 an ounce, after surging above $2,700 yesterday for the first time ever. Oil futures were about 1% higher after a big decline yesterday, while bitcoin rose more than 1% to around $66,300, near its highest levels in more than a month.

Bristol Myers Squibb Rises on Schizophrenia Drug Approval

1 hr 47 min ago

Shares of Bristol Myers Squibb (BMY) rose Friday, a day after the Food and Drug Administration (FDA) approved the use of what the pharmaceutical firm called the first treatment for schizophrenia in decades.

CEO Chris Boerner said regulatory approval of Cobenfy "marks an important milestone for the community, where after more than 30 years, there is now an entirely new pharmacological approach for schizophrenia—one that has the potential to change the treatment paradigm."

Dr. Rishi Kakar, an investigator in the clinical studies of the drug, called approval "a transformative moment" in the treatment of the illness because, historically, medicines have targeted the same primary pathways in the brain, and Cobenfy offers sufferers "a new option."

Bristol Myers Squibb Shares were up about 2% in recent trading.

-Bill McColl

Futures Tied to Major Indexes Inch Higher

4 hr 12 min ago

Futures tied to the Dow Jones were up less than 0.1%.

S&P 500 futures were also up fractionally, as the index looks to add to record highs.

Nasdaq 100 futures were up also up less than 0.1%.