01:27 PM EDT, 03/22/2024 (MT Newswires) -- US equity indexes traded mixed after midday Friday but still headed for a higher close this week in which the Federal Reserve's policy pronouncements pushed government bond yields lower.

The S&P 500, which made new highs this week, fell 0.2% to 5,233.6 intraday. The Nasdaq Composite was little changed at 16,408.2, erasing earlier losses. The Dow Jones Industrial Average fell 0.6% to 39,561.1, within touching distance of the eye-popping 40,000 mark.

The momentum in equity markets has been positive, helped by the Swiss National Bank surprisingly cutting rates on Thursday, becoming the first central bank with a G10 currency to do so this cycle, Deutsche Bank said. Then, shortly after, the Bank of England kept rates on hold, but none of the monetary policy committee members voted for a rate hike for the first time since September 2021.

"And of course, all this follows the Federal Reserve's signal on Wednesday that three rate cuts were still on the agenda this year, despite upgrading their inflation forecasts," Jim Reid, head of global fundamental credit strategy at Deutsche Bank, said. "Whether we get what is priced in is a moot point, but for the current direction of travel, the promise is all that matters for now."

Gold for June delivery fell 0.6% to $2,170.71 per ounce intraday, after surpassing its highest level ever of $2,200 mid-week in the aftermath of the Fed policy meeting in which the rate-setting committee left its median interest-rate expectations for this year unchanged at 4.6%.

"The expectation of central banks starting to cut policy rates later this year will continue to underpin gold," Saxo Bank said in a note.

The US Treasury two-year yield fell 3.9 basis points to 4.59%, and the 10-year yield slid to 4.21%, a drop of 5.7 basis points. Both the yields are down from 4.73% and 4.31%, respectively, at the close last week.

In company news, Lululemon Athletica ( LULU ) shares tumbled 17% at one point, the steepest decline on the S&P 500 and the Nasdaq, as at least seven analysts reduced their share-price target after the company's sales and earnings guidance for fiscal Q1 and the full year trailed market expectations. It was down 15% midday.

FedEx's (FDX) fiscal Q3 earnings surpassed expectations as operating income from Express benefited from lower-than-expected incentive compensation accrual and effective capacity utilization by ground and freight networks, UBS said. Shares of the parcel delivery firm rose 7.4%, the biggest gain on the S&P 500.

Nike's ( NKE ) outlook for the first half of 2025 implies no revenue growth for calendar year 2024, which "leaves little to play for in the near term," RBC Capital Markets said. The shares of the sports footwear and apparel group slumped 8.3%, the steepest dive on the Dow.

In economic news, state-level data released by the Bureau of Labor Statistics Friday showed the unemployment rate fell in three states in February, rose in three, and held steady elsewhere. The national unemployment rate was reported at 3.9% in February, up from 3.7% in January.

West Texas Intermediate crude oil fell 0.4% to $80.74 a barrel.