Stocks mixed as Fed rate cut optimism wanes amid global market shifts

Stocks were mixed Friday as enthusiasm over the Federal Reserve’s big rate cut faded. European equities and US futures dipped, while Asian markets gained. The Bank of Japan kept rates steady, with Governor Kazuo Ueda sounding less hawkish than expected.

Europe’s Stoxx 600 fell, led by a sharp drop in Mercedes-Benz after cutting its forecast. US futures slipped after the S&P 500 hit its 39th record this year. In Asia, stocks rose 0.6%.

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The Fed’s 50-point rate cut boosted hopes for a soft economic landing, though traders expect more aggressive cuts ahead. Triple witching, a quarterly derivatives event, and index rebalancing could add volatility to the markets.

Treasury yields were stable, and the dollar strengthened. The UK pound gained on strong retail sales. In China, policymakers are considering easing home purchase restrictions to support the struggling housing market. Gold reached a new high, while oil surged for its best week since February.