LIVE MARKETS-Rate cut hopes battle tech concerns

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RATE CUT HOPES BATTLE TECH CONCERNS

Rising hopes of more interest rate cuts this year battled with ongoing concerns about the impact of AI on software and other companies to make for a choppy day of trading on Friday, with the main Wall Street indexes ending mixed and lacking conviction.

Traders ramped up bets that the Federal Reserve could cut rates three times this year after data showed softer than expected consumer price inflation in January. Fed funds futures now show 64 basis points of cuts priced in by December, up from 59 basis points late on Thursday.

But market participants also remain nervous that rapidly developing AI will dent the bottom line of software and other companies vulnerable to the technology.

The Nasdaq Composite .IXIC was the worst-performing major index, ending down 0.2%, while the Dow Jones Industrial Average .DJI and S&P 500 .SPX eked out minor gains.

Communication Services .SPLRCL was the weakest sector, while Utilities .SPLRCU and Real Estate .SPLRCR outperformed.

The Dow Jones Utilities Average .DJU, S&P 500 Utilities and S&P 500 Staples .SPLRCS scored record closes.

Here is Friday’s closing market snapshot:

(Karen Brettell, Terence Gabriel)

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