# Wall Street's Friday Muddle: Tech Slides While Rate Hopes Lift Housing

U.S. markets stumbled through Friday's session without clear conviction. The Dow managed a modest 0.2% gain to 45,851.75, but the S&P 500 dropped 0.2% to 6,526.09 and the Nasdaq fell harder at 0.6% to 21,938.84—a telling divergence that exposed investor hesitation.

The culprit? Two competing narratives colliding mid-session. Early bullish momentum—sparked by Nvidia's earnings beat and dovish comments from NY Fed President John Williams—initially lifted sentiment. Williams called monetary policy "modestly restrictive" and hinted at further rate cuts ahead, sending expectations of a December rate cut to 75.3% (up from 39.1% Thursday). But the rally fizzled.

Investing sentiment curdled as reality set in. Tech stocks, which had led Thursday's rebound, reversed sharply. Nvidia tanked 2.5% to two-month lows, dragging the Philadelphia Semiconductor Index down 2.4%. Broader tech weakness (software, networking, hardware) hammered the Nasdaq below levels last seen over two months ago.

Meanwhile, rate-sensitive sectors thrived: housing stocks surged 3.5% and transportation stocks jumped 2.1%—the playbook when rate-cut odds climb.

Global spillover was brutal. Asia got hammered—Japan's Nikkei and Hong Kong's Hang Seng both fell 2.4%, while South Korea's Kospi nosedived 3.8%. Europe's response was muted: U.K. flat, France slightly negative, Germany down 0.7%.

Bond markets kept rallying. The 10-year yield sank 3.7 basis points to 4.069%, betting on easier monetary policy ahead.

The mixed signals suggest traders are caught between rate-cut optimism and lingering anxiety about valuations and economic resilience—classic recipe for choppy trading until the next catalyst arrives.