US stocks lost steam in mid-morning trading on Friday after consumer sentiment hit a six-month low. The Dow Jones Industrial Average (^DJI) was up roughly 0.2%, while the S&P 500 (^GSPC) was hovering above the flatline, and the Nasdaq Composite (^IXIC) declined around 0.1%.
The latest University of Michigan consumer sentiment survey released Friday revealed a 13% drop in overall sentiment during the month of May. The index reading for the month came in at 67.4, its lowest level in six months, and well below economist expectations of 76.2.
Investors are closely monitoring the future of interest rate cuts amid signs of a cooling labor market. Federal Reserve speakers, including Michelle Bowman, Neel Kashkari, and Austan Goolsbee, are scheduled to provide more insight into the timing and pace of any easing in policy.
On the corporate front, TSMC (TSM) shares surged after the Taiwanese contract chipmaking giant reported a 60% increase in sales in April. The company attributed the growth to sustained demand for AI and a revival in consumer electronics like smartphones.
Overall, the market sentiment was mixed as concerns about consumer sentiment and interest rates weighed on investors. The upcoming speeches from Fed officials and corporate earnings reports will likely continue to drive market movements in the coming days. Stay tuned for more updates on the evolving market trends.