Markets take a dip from their recent record peaks on the New York Stock Exchange

Wall Street's stocks experienced a decline following their previous record-breaking highs.

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2025 September 11 . 5:11 PM

2 min read

Markets experience a retreat from recent peak levels on Wall Street's stock exchanges

Markets take a dip from their recent record peaks on the New York Stock Exchange

The Federal Reserve Chair, Jerome Powell, signaled last week that the central bank may cut its key interest rate at its meeting next month, amid signs of sluggishness in the job market. This announcement came after the S&P 500 reached a record high the day before, but fell 0.6% on Friday. The Dow Jones Industrial Average also slipped 0.2%, and the Nasdaq composite closed 1.2% lower.

Despite the market's slight dip, the S&P 500 is still up 9.8% so far this year. Ulta Beauty fell 7.1% despite posting second-quarter earnings and revenue that topped analysts' estimates. On a positive note, Petco Health & Wellness and Autodesk bucked the broader market slide after reporting better-than-expected quarterly results, with Petco jumping 23.5% and Autodesk climbing 9.1%.

Treasury yields were mixed in the bond market, with the yield on the 10-year Treasury rising to 4.23% and the yield on the two-year Treasury slipping to 3.62%. Mixed economic data may have given traders an excuse to sell and pocket some profits following the market's milestone-setting week.

One such piece of economic data is the latest reading in a survey of U.S. consumers by the University of Michigan, which showed sentiment soured this month, with the final August reading being the lowest since May. Another important barometer is the PCE Price Index, which, according to Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, will keep the focus on the jobs market. Ms. Zentner also stated that the odds still favor a September interest rate cut.

Traders see a 87% chance that the central bank will cut its benchmark interest rate next month by a quarter of a percentage point, according to data from CME Group. The Fed will get to review two more important inflation barometers before its next policy meeting, the producer price index and consumer price index.

Sam Stovall, chief investment strategist at CFRA, stated that the market's downturn on Friday was primarily due to traders not wanting heavy exposure over a long weekend. European markets were mostly lower and Asian markets closed mixed. U.S. markets will be closed on Monday for the Labor Day holiday.

In other news, Marvell Technology slid 18.6% after its third-quarter guidance fell short of what Wall Street was expecting. The latest reading in a closely watched measure of inflation showed prices mostly held steady last month.

Overall, the market saw a slight dip due to mixed economic data, but the odds of a September interest rate cut remain high according to experts. As always, investors are advised to stay informed and make decisions based on their own research and risk tolerance.