21.08.202523:08:16UTC+00NZX 50 Drops but Points to 3rd Straight Weekly Gain

In early trading on Friday, New Zealand's NZX 50 Index dropped by 45 points, or 0.3%, settling at 13,149. This decline interrupted the gains observed over the previous two sessions and retracted from its peak since December of last year. The NZX 50's downward movement mirrored the overnight reduction on Wall Street, as investors anticipated US Federal Reserve Chair Jerome Powell's forthcoming address at the Jackson Hole symposium amidst sustained sell-offs in technology stocks. Investor caution was triggered by unexpectedly high US jobless claims data, despite an anticipated 73% probability of an interest rate cut by the Federal Reserve in September. In terms of sector performance, consumer discretionary stocks led the downturn, followed by declines in the technology, healthcare, and materials sectors. Notable companies experiencing losses included Gentrack Group, which dropped 1.7%, Fisher & Paykel, declining by 1.1%, and Fletcher Building, which slipped 1.0%. Conversely, Fonterra saw a significant rise of 4.2%, following its announcement to divest its global consumer and affiliated businesses to the French dairy giant Lactalis for NZ$3.8 billion. For the week, the NZX 50 is poised for a 2.1% increase, potentially marking its third successive weekly gain.