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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 0.5%, S&P 500 up 0.03%, Nasdaq up 0.3%

(Updates to 1430 ET/1830 GMT)

By Caroline Valetkevitch

NEW YORK, March 22 (Reuters) - U.S. stocks were little

changed on Friday afternoon, but the Dow and S&P 500 were on

track for their biggest weekly percentage gains since

mid-December after the Federal Reserve this week stuck with

projections for three interest rate cuts by year's end.

An index of semiconductors was also up sharply for

the week amid optimism over artificial intelligence.

On Friday, consumer discretionary shares edged lower.

Shares of Nike ( NKE ) were down 5.8% 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, as

it scales back on franchises to save costs.

Lululemon Athletica ( LULU ) shares were down 15.2% after it

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.

The Dow Jones Industrial Average fell 180.07 points,

or 0.45%, to 39,601.30, the S&P 500 gained 1.79 points,

or 0.03%, to 5,243.32 and the Nasdaq Composite gained

53.13 points, or 0.32%, to 16,454.97.

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.

Among gainers, FedEx ( FDX ) jumped 7% after the company

beat Wall Street expectations for quarterly profit.

Digital World Acquisition ( DWAC ) was down 5% after

shareholders of the blank-check firm voted to approve its

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

technology company.