Wall Street indices started Friday on a mixed footing, with the Dow Jones Industrial Average (DJIA) down 0.1%, the S&P 500 (SPX) up 0.13%, and the tech-heavy Nasdaq Composite (IXIC) gaining 0.24%. Energy shares lead the early advance, up 1.2%, while Utilities lag, down 1.1%.

NetApp Inc. (NTAP) surged 23%, making it the top gainer, while Las Vegas Sands Corp. (LVS) fell almost 5%. Thursday’s release of the Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, showed a continued easing of inflation, fueling ongoing debate over the trajectory of Fed policy. PCE inflation came in line with forecasts at 2.4% year-over-year, with the Core PCE at 2.8%.

CME FedWatch Tool indicates a 70% probability of a June rate cut by the Fed. However, recent commentary from regional Fed presidents has been mixed. Atlanta Fed President Raphael Bostic hinted at the potential for cuts this summer, but San Francisco Fed President Mary Daly warned against premature easing, while Cleveland Fed President Loretta Mester cautioned that disinflation progress can stall.

Deutsche Bank analysts noted record highs for the S&P 500 and NASDAQ, with the “Magnificent 7” tech giants outperforming. European markets were more subdued, though Germany’s DAX hit an all-time high. Meanwhile, the recently revised Q4 US GDP figures provided additional context amidst the ongoing inflation debate.