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Tesla down on report co trims car production in China

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FedEx ( FDX ) jumps on Q3 profit beat

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Nike ( NKE ) falls after revenue forecast disappoints

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Indexes: Dow down 0.39%, S&P off 0.09%, Nasdaq up 0.03%

(Updated at 11:25 a.m. ET/1525 GMT)

By Bansari Mayur Kamdar and Shashwat Chauhan

March 22 (Reuters) -

The blue-chip Dow and the benchmark S&P 500 eased on Friday,

but they remained on track for strong weekly gains as investors

cheered the Federal Reserve's rate-easing stance.

Both the indexes were set for their best weekly performance

since mid-December, while the tech-heavy Nasdaq was set

to notch its best week since mid-January.

"It's been a strong week with some good macro drivers in

the form of central bank dovishness," said Ross Mayfield,

investment strategy analyst at Baird.

"Just a lack of catalyst today allows the market to take

a breather, but nothing concerning."

All three main U.S. indexes hit fresh record closing highs

in the previous session as chipmakers rallied and the Fed

signaled it was still on track for three interest-rate cuts this

year.

Traders now see a 71% chance of the first rate cut hitting

in June, from 56% at the start of this week, according to the

CME's FedWatch Tool.

Investors will also be closely monitoring commentary from a

host of central bankers expected later in the day for further

cues on the central bank's monetary policy trajectory.

At 11:25 a.m. ET, the Dow Jones Industrial Average

was down 154.94 points, or 0.39%, at 39,626.43, the S&P 500

was down 4.96 points, or 0.09%, at 5,236.57, and the

Nasdaq Composite was up 5.05 points, or 0.03%, at

16,406.89.

Tesla slid 2.0% following a report that the EV

maker has reduced car production at its plant in China.

Nevertheless, the EV maker and most rate-sensitive

megacap growth and technology stocks were set for strong weekly

gains.

The Philadelphia Semiconductor Index climbed

nearly 2.4% so far this week as chipmakers rallied on AI-led

optimism.

Eight of the 11 major S&P 500 sectors were trading

lower, with consumer discretionary down 0.8%.

Weighing on the Dow, Nike ( NKE ) shed 7.8% after the

world's largest sportswear maker warned that its revenue in the

first half of fiscal 2025 would shrink by a low-single-digit

percentage, as it scales back on franchises to save costs.

Lululemon Athletica ( LULU ) forecast annual revenue and

profit below expectations as demand wanes for the apparel

retailer's premium athleisure, mainly in North America, sending

its shares tumbling 18.0%.

FedEx ( FDX ) jumped 7.9% after the company beat Wall Street

expectations for quarterly profit and operating margin in the

parcel delivery firm's largest unit, Express, rose 2.5% in the

February fiscal quarter from 1.2% a year ago.

Digital World Acquisition ( DWAC ) fell 6.7% after

shareholders of the blank-check firm voted to approve its

merger with former U.S. President Donald Trump's media and

technology company.

Declining issues outnumbered advancers for a 1.79-to-1 ratio

on the NYSE and a 1.95-to-1 ratio on the Nasdaq.

The S&P index recorded 45 new 52-week highs and one new low,

while the Nasdaq recorded 68 new highs and 60 new lows.