At 1:30 pm, the Dow Jones Industrial Average was down 0.3% but only slightly from its session lows. ET Friday, as the stock markets softened in the lead up to the weekend.
For the second consecutive day, the index is trying to find support at the moving average of 50 days.
The S&P lost 0.5% per hour, while the Nasdaq was lagging behind with a loss of 0.7%. Russell 2000, a small-cap index, fell by 0.7%.
The volume on the NYSE was lower than it was on Thursday.
Crude oil prices continued to fall, reaching $70.20 per barrel.
On Friday, Fed Governor Michelle Bowman said that an interest-rate pause will depend on "consistent evidence that inflation is on a downward path." Michelle Bowman stated that a pause in interest rates will be dependent on "consistent proof that inflation is on an upward path."
The yield on 10-year Treasury notes rose by 5 basis points, to 3.44%.
Stocks moving today Outside Dow Jones
The homebuilder stocks were mixed amid uncertainty about rates. PulteGroup (PHM), KB Home, and PulteGroup Home (KBH), all rose modestly. Meritage Homes MTH fell near an alternative entry at 130.78. It holds above the 50-day average.
Penumbra and Insulet, both in the medical product group, rose on Friday. According to IBD MarketSmith, both stocks along with Novo Nordisk NVO have found support near the 50-day level. Insulet remains in the buy zone at its 10-week line.
Solar stocks rose after First Solar (FSLR), a Tempe, Ariz.-based company, retook the 50-day line following news that it will acquire Evolar a European firm that specializes thin photovoltaic technology. Enphase Energy rose 3% as a result.
Shoals Technologies is keeping a close eye on the 200-day line as it tests. On Tuesday, shares retook control of the 50-day line with a strong volume.
Charles Schwab (SCHW), a major financial services company, rose after news broke that client assets grew during April.
The earnings of Dollar Tree (DLTR), and Ross Stores, (ROST), are due to be released later this month. ROST has tested its 50-day level, which had been a resistance for a few weeks. Dollar Tree shares are still in a long-term correction.
Tesla shares (TSLA), which had been rising early, were retracted after CEO Elon said that Twitter will have a new chief executive. Later, he confirmed that Linda Yaccarino, former NBCUniversal Advertising Chief will be the new Twitter CEO.
Tesla's stock has fallen below the 50-day line. A China market regulator also said Friday that the EV manufacturer will begin a software upgrade for more than 1 million cars on May 29.
Home Depot (HD), a Dow Jones component, rose while Walmart (WMT), a Dow Jones component, fell. Earnings are due next week.
Consumer Sentiment Drops
The University of Michigan Consumer Sentiment Index fell from 63.5 to 57.7 by May. LPL Financial's Chief Economist Jeffrey Roach believes that a slowdown in spending due to concerns about the weakening of banking, job prospects and the approaching debt ceiling could finally bring inflation on track.