Key Takeaways

• U.S. equities were mixed at midday Friday, March 22, 2024 as tech stocks gained, but most other sectors faltered after a two-day rally amid anticipation of interest rate cuts and AI enthusiasm.
• Lululemon shares tumbled after its full-year revenue and earnings guidance fell short of analyst estimates.
• Nike shares also dropped after the athletic apparel company provided a soft outlook for revenue that offset a better-than-expected quarterly earnings report.

U.S. equities were mixed at midday as tech stocks gained, but most other sectors faltered after a two-day rally amid anticipation of interest rate cuts and enthusiasm for artificial intelligence (AI) . The Nasdaq was higher, while the S&P 500 was flat and the Dow lost ground.

It was a rough day for sports apparel companies as Lululemon ( LULU ) shares tumbled after its full-year revenue and earnings guidance fell short of analyst estimates. Nike ( NKE ) also dropped after the athletic apparel company provided a soft outlook for revenue that offset a better-than-expected quarterly earnings report.

Tesla ( TSLA ) shares fell following reports the electric vehicle maker was slowing production at its Shanghai, China plant amid sluggish EV demand and intense competition.

Reddit ( RDDT ) shares lost ground on their second day of trading, after surging nearly 50% in the first social media IPO since 2019.

FedEx ( FDX ) shares soared after the logistics company reported quarterly earnings that topped analysts' expectations , as ongoing cost-cutting efforts gave a boost to the bottom line.

Treasury yields fell and the dollar climbed as Congress rushed to pass a spending bill before a midnight deadline. Most major cryptocurrencies traded lower.

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