Wall Street is seeing a quieter day, with U.S. stocks drifting near their all-time highs after a strong worldwide rally the previous day. The U.S. stock market trends show a slight dip, but major indices are still in strong positions.

The S&P 500 (INDEXSP: .INX) edged 0.1% lower in early trading, though it remains on track for its fifth winning week in the last six. Meanwhile, the Dow Jones Industrial Average (INDEXDJX: .DJI) dropped by 66 points, or 0.2%, following its record-setting performance the previous day. The Nasdaq Composite (INDEXNASDAQ: .IXIC) remained nearly flat as of 9:35 a.m. Eastern time.

FedEx Slumps After Missing Earnings Expectations

A notable drag on the market came from FedEx (NYSE:FDX), whose stock plunged by 14%. The logistics giant reported earnings and revenue that missed analysts’ expectations. FedEx noted that U.S. customers were sending fewer packages through priority services, while it faced rising wages and increased operational costs. Additionally, FedEx revised its fiscal year revenue growth forecast downward, signaling potential challenges ahead for the company.

Nike Stock Surges on Leadership Change

In contrast, Nike (NYSE:NKE) jumped 7.5% after naming Elliott Hill as its new CEO. Hill, who had been with Nike for over three decades before retiring in 2020, replaced outgoing CEO John Donahoe. Investors welcomed the news, seeing it as a strategic move that could further boost Nike’s performance as it navigates a rapidly changing retail landscape.

Trump Media Takes Another Hit

Shares in Trump Media and Technology Group (NASDAQ:DJT) fell another 6%. The company’s biggest shareholder, former President Donald Trump, gained the option to sell his shares following the end of a lock-up agreement that had previously restricted insiders from selling their holdings. Despite this flexibility, Trump has stated he is not in a hurry to cash in on his shares. The volatile stock has fluctuated significantly over the past six months, with frequent swings of 5% or more in a single trading session.

Mixed Results for Lennar

Homebuilder Lennar (NYSE:LEN) saw a 4.2% decline after reporting mixed earnings. While the company’s profit exceeded expectations, its margins on home sales narrowed. Lennar expects these slimmer margins to persist in the current quarter, although it remains optimistic about the potential for improvement thanks to recent interest rate cuts by the Federal Reserve.

Federal Reserve Rate Cut Boosts Stock Market Confidence

Earlier this week, the Federal Reserve cut its main interest rate for the first time in more than four years, a move aimed at reducing mortgage rates and supporting homebuyers. This decision comes after the Fed had held rates at a two-decade high in an effort to curb inflation.

With inflation now down from its peak, Federal Reserve Chair Jerome Powell expressed confidence that the Fed can focus more on sustaining economic growth without triggering a recession. However, some analysts remain cautious. Barry Bannister, chief equity strategist at Stifel, warned that the U.S. stock market may be overvalued, with stock prices rising faster than corporate earnings. He predicts that the S&P 500 could see a sharp drop by the end of the year if current trends continue.

Global Stock Markets Movements

Outside of the U.S., global stock markets had mixed results. In Europe, major indexes fell, while in Asia, Japan’s Nikkei 225 rose 1.5% after the Bank of Japan left interest rates unchanged. Meanwhile, Hong Kong saw a 1.4% gain, while Shanghai posted more modest gains at less than 0.1%.

With no major economic data releases scheduled for Friday, investors are looking ahead to next week for updates on U.S. business activity, the latest consumer spending figures, and revisions to the country’s GDP growth for the summer.