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US consumer sentiment slips again in September, survey

says

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Microsoft ( MSFT ) higher after deal to restructure OpenAI

(Updates with end of session)

By Noel Randewich and Ragini Mathur

Sept 12 (Reuters) - The Nasdaq notched a record high

close on Friday in a mixed trading session, lifted by Microsoft ( MSFT )

as investors looked ahead to the Federal Reserve's policy

meeting next week, when it is widely expected to cut interest

rates to counter a slowdown in the jobs market.

Lifted by Tesla and other technology-related stocks, the

Nasdaq added to a rally in the previous session that saw all

three indexes hit all-time highs.

Investors are laser-focused on the Fed's meeting on Tuesday and

Wednesday. Traders expect the central bank to cut interest rates

by 25 basis points after recent data showed

longstanding weakness in hiring and easing inflation concerns.

"Because we had such a nice jump in the stock market

yesterday, investors are basically catching their breath," said

Sam Stovall, chief investment strategist CFRA Research. "There's

really not going to be any data between now and Wednesday. It's

a sort of wait-and-see attitude."

Microsoft ( MSFT ) gained after the technology giant avoided a

possible hefty EU antitrust fine by offering customers reduced

prices for Office products excluding Teams.

Tesla jumped after board chair Robyn Denholm dismissed

concerns that CEO Elon Musk's political activity had hurt sales

at the electric-vehicle maker and said the billionaire was

"front and center" at the company after several months at the

White House. With Friday's surge, Tesla shares remain down 2% in

2025.

Declines in Goldman Sachs ( GS ) and paint-maker

Sherwin-Williams ( SHW ) kept the Dow Jones Industrial Average

in negative territory.

The University of Michigan's survey showed U.S. consumer

sentiment fell for a second straight month in September as

consumers saw rising risks to business conditions, the labor

market and inflation.

According to preliminary data, the S&P 500 lost 3.47

points, or 0.05%, to end at 6,584.00 points, while the Nasdaq

Composite gained 96.38 points, or 0.44%, to 22,139.46.

The Dow Jones Industrial Average fell 273.44 points, or

0.59%, to 45,834.56.

Following signs of a worsening jobs market, interest rate

futures reflect expectations of cuts totaling 75 basis points by

the end of the year.

All three major indexes gained for the week, with the S&P 500

and Nasdaq lifted by a revival in artificial intelligence trade

after cloud computing giant Oracle's strong forecast on

Tuesday.

Warner Bros Discovery ( WBD ) extended a surge from

Wednesday, when a source said Paramount Skydance ( PSKY ) was

preparing a bid for the struggling media company.

Shares of vaccine makers fell after a report said U.S. health

officials are planning to link coronavirus vaccines to the

deaths of 25 children.