US stocks opened lower on Friday as investors took a pause from a solid rally following the Federal Reserve's outsized interest rate cut this week.
The Dow Jones Industrial Average dropped 120 points or 0.3%, to 41,906.55, while the tech-heavy Nasdaq Composite fell 0.2% to 17,950.7.
The S&P 500 declined as much as 0.26% to 5,698.93. Nine of the eleven sectoral indices were trading in green, with utilities and telecommunications seeing gains while industrials and energy led declines.
Facebook parent Meta Platforms Inc. gained 4%, while Nike rose 7%. Shares of shipping giant FedEx shed 14% after posting a significant decline in profits and cutting its full-year guidance.
Friday's dip comes after key indices S&P 500 and Dow closed at record highs a day prior, as unemployment data, along with the Fed's half-point rate cut, bolstered investors' sentiment. The three major US benchmarks are on pace for weekly gains.
The US dollar strengthened against major currencies. The Bloomberg Dollar Index was up 0.2% at 100.82.
The yen fell against the dollar after Bank of Japan Governor Kazuo Ueda said the bank would not rush to raise interest rates.
Spot gold prices were trading 0.8% higher at $2,607.9 an ounce.
International benchmark Brent oil dropped 1% to $74 per barrel. Oil prices are still on track to register gains for a second straight week following a large cut in US interest rates and declining global stockpiles.
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