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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

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S&P 500 +0.10%, Nasdaq +0.50%, Dow -0.41%

(Updates with afternoon trading)

By Noel Randewich and Ragini Mathur

Sept 12 (Reuters) - The S&P 500 and the Nasdaq climbed

to record highs on Friday, 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.

The Dow Jones Industrial Average dipped, while the S&P

was up marginally following 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 2.1% after the technology giant

avoided a possible hefty EU antitrust fine by offering customers

reduced prices for Office products excluding Teams.

Tesla jumped almost 7% 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.

The S&P 500 was up 0.10% at 6,593.81 points.

The Nasdaq gained 0.50% to 22,152.40 points, while the Dow

was down 0.41% at 45,919.34 points.

Seven of the 11 S&P 500 sector indexes declined, led lower

by materials, down 0.96%, followed by a 0.78% loss in

health care. The S&P 500 technology index

climbed 0.65%.

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 are poised to record weekly gains,

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 ) surged 12.5%, extending 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. Moderna ( MRNA ) fell 6.9%, while

Pfizer ( PFE ) and Novavax ( NVAX ) both fell more than 3%.

Declining stocks outnumbered rising ones within the S&P 500

by a 2.5-to-one ratio.

The S&P 500 posted 20 new highs and 3 new lows; the Nasdaq

recorded 89 new highs and 33 new lows.