Dow Jones Industrial Average backslides on Friday as tech stock pullback drags down indices

• Dow Jones follows other indices lower on Friday.
• UoM Consumer Sentiment Index ticked lower.
• June rate cut bets have edged down to 60%.

The Dow Jones Industrial Average (DJIA) is down a little over half a percent as markets round the corner into the Friday closing bell with US equities broadly lower on the day. An extended pullback in the tech and telecoms sectors are dragging down the averages, with limited gains to keep the Dow Jones on-balance as markets buckle down for the weekend.

According to the CME’s FedWatch Tool, rate futures are pricing in nearly a 41% chance of no rate movement from the Federal Reserve (Fed) at the US central bank’s June rate call. Money markets see an over 90% chance of no rate cuts from the Fed at both the March and May rate statements. The Fed’s next rate call and update to the Fed’s in-houser Dot Plot summary of rate projections are due next week at 1800 GMT on Wednesday.

The Technology Sector has extended into a four-day pullback after peaking on Monday, shedding an additional 1.4% on Friday. A 1.2% decline in the Communications Services Sector follows closely behind the Tech Sector’s pullback.\

The Materials and Industrials Sectors are in the green on Friday but doing little to counterbalance headline losses, gaining a scant 0.22% and 0.11%, respectively.

Dow Jones news

Most of the equities listed on the Dow Jones Industrial Average (DJIA) were in the red on Friday, with Microsoft Corp. (MSFT) and Salesforce Inc. (CRM) leading the losers, both shedding around 2.5%. Amazon Inc. (AMZN) followed close behind, down around 2.3% on the day.

Boeing Co. (BA) is seeing a brief reprieve from recent hard selling, rebounding 1.3% on Friday as 3M Co. (MMM) climbs around 1%. Of the 30 securities listed on the Dow Jones, over two-thirds are printing on the down side as markets prepare to exit for the weekend.

The Dow Jones Industrial Average is following its peer indices lower on Friday but is drowning slower than the others, falling around 0.6% on the day as the NASDAQ Composite sheds a full percentage point and the S&P 500 slides 0.7%.

Dow Jones Industrial Average technical outlook

The Dow Jones Industrial Average (DJIA) declined after facing an intraday rejection from a supply zone near the 39,000.00 major handle, marking in the day's bottom at 38,606.59. The index is still trading above the week's early low set on Monday near 38,470.00, but is still down 1.4% from the week's peak bids near 39,225.00.

The Dow Jones continues to churn near all-time highs set in February at 39,281.86, and the index is still up over 19% from October's lows near 32,475.00.

Dow Jones Industrial Average, 5-minute chart