US stocks wrapped up a volatile session on Friday with a mixed close as investors weighed the implications of the Federal Reserve's interest rate cut. Despite the prior day’s rally, uncertainty lingered in the markets. The S&P 500 and Nasdaq fell by 0.2% and 0.3%, respectively, while the Dow Jones Industrial Average edged up 36 points, extending its record-setting streak.

The Federal Reserve’s recent oversized interest rate cut has divided policymakers on how to approach inflation moving forward. Governor Christopher Waller supported the half-point rate cut, citing favorable data that suggests inflation is cooling. On the other hand, Governor Michelle Bowman, the sole dissenter, expressed concerns that such a move might signal a premature victory over inflation, which could prove detrimental in the long run.

Among major stock movements, FedEx plunged a staggering 15.2% after the logistics giant reported disappointing earnings and revised its revenue forecast downward. The company attributed the poor performance to weaker demand, particularly in its freight and ground divisions. This dramatic drop led to a wave of sell-offs as investors grew wary of the company's near-term outlook.

On the flip side, Nike shares surged by 6.9% following the announcement that Elliott Hill would step into the role of CEO, replacing long-time chief executive John Donahoe. Investors reacted positively to the news, seeing Hill's appointment as a potential catalyst for renewed growth and innovation at the sportswear giant.

Despite the mixed close, US stocks posted gains for the week. The S&P 500 finished up by 1.3%, the Nasdaq advanced 2.1%, and the Dow Jones gained 0.8%. This upward momentum reflects investor optimism that the Federal Reserve’s rate cut could help the US economy avoid a deeper slowdown, even as some segments of the market experience volatility.

Looking ahead, market participants will closely monitor Federal Reserve speeches and economic data for signs of how the central bank plans to manage its dual mandate of maximizing employment and controlling inflation. Investors are particularly focused on inflationary pressures and how the Fed's monetary policy will address them without stifling growth. For now, though, the half-point rate cut remains the central focus, with differing opinions among Fed officials creating a cloud of uncertainty around future moves.

In summary, US stocks closed out the week on a mixed note, balancing positive corporate developments, like Nike’s leadership change, with weaker earnings from major players like FedEx. Investors are grappling with uncertainty about inflation trends, monetary policy, and the broader economic outlook, setting the stage for what could be another eventful week in the markets.

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