05.11.202622:56:01UTC+00NZX 50 Retreats from Record High, but Set for 2nd Weekly Gain

The NZX 50 fell 162 points, or 1.2%, to 13,929 in Friday morning trade, retreating from the record high set the previous day. The decline mirrored overnight weakness on Wall Street, where AI-linked chipmakers slumped, as investors weighed the implications of the Democrats’ sweeping victory on Tuesday.

The pullback came after the broader index logged its strongest single-day performance in nearly 19 months on Thursday. Sentiment was further pressured by rising oil prices, which reignited concerns about inflation and the prospect of additional interest rate hikes.

Investors also turned cautious ahead of key data releases: US nonfarm payrolls later today; China’s CPI, PPI, and trade figures; and US inflation data scheduled for next week.

Losses were broad-based, with nearly all sectors trading lower, led by financials. Notable decliners included Infratil (-3.0%), F&C Investment (-2.8%), A2 Milk (-1.9%), Auckland International Airport (-1.7%), Fisher & Paykel (-1.2%), and Freightways Group (-0.9%).

Despite Friday’s retreat, the index remains on track for a weekly gain of about 1.0%, which would mark its second consecutive weekly advance.