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FedEx ( FDX ) jumps on Q3 profit beat

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Nike ( NKE ) falls after revenue forecast disappoints

(Updates to 1600 ET)

By Caroline Valetkevitch

NEW YORK, March 22 (Reuters) - The S&P 500 ended near

flat on Friday, but the index registered its biggest weekly

percentage gain of 2024 after the Federal Reserve this week

stuck with projections for three interest rate cuts by year's

end.

The Nasdaq ended slightly higher for the day, along with an

index of semiconductors. The semiconductor index was also

up sharply for the week amid continued optimism over artificial

intelligence.

On Friday, consumer discretionary shares edged lower.

Shares of Nike ( NKE ) fell sharply after the world's

largest sportswear maker warned that revenue in the first half

of fiscal 2025 would shrink by a low-single-digit percentage.

Lululemon Athletica ( LULU ) shares fell after the company

forecast annual revenue and profit below expectations.

Earlier in the week, the Fed left rates unchanged but

signaled it was still on track for three rate cuts this year.

"The market took that as saying the Fed isn't your enemy any

more, and eventually it is going to be your friend," said Matt

Stucky, chief equity portfolio manager at Northwestern Mutual

Wealth Management Company.

According to preliminary data, the S&P 500 lost 7.35

points, or 0.14%, to end at 5,234.15 points, while the Nasdaq

Composite gained 26.21 points, or 0.16%, to 16,428.82.

The Dow Jones Industrial Average fell 309.36 points, or

0.78%, to 39,472.01.

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

hitting in June versus 56% at the start of this week, according

to the CME's FedWatch Tool.

All three major indexes posted gains for the week.

"At some point before too long it wouldn't be surprising to

see a pullback or correction, or even a sideways trading period,

after the gains we've had since the October lows," said Michael

Sheldon, director at RDM Financial Group at Hightower in

Westport, Connecticut.

Among the day's gainers, FedEx ( FDX ) jumped after the

company beat Wall Street expectations for quarterly profit.

On the flip side, Digital World Acquisition ( DWAC ) ended

sharply lower after shareholders of the blank-check firm voted

to approve its merger with former U.S. President Donald Trump's

media and technology company.