S&500 and DOW back away from records

US stocks dipped from record highs on Friday as rate-cut euphoria faded, with FedEx (FDX) earnings providing a reality check.

The S&P 500 (^GSPC) fell roughly 0.3%, after the benchmark index ended at an all-time high. The Dow Jones Industrial Average (^DJI) traded steady on the heels of notching its own record close. Leading the way lower, contracts on the tech-heavy Nasdaq Composite (^IXIC) dropped 0.3%.

Stocks surged on Thursday as investors embraced Chair Jerome Powell's message that the Federal Reserve made a big interest-rate cut to support the economy, not to save it — an idea bolstered by jobless claims data.

That roaring rally is now sputtering amid reminders that risks to growth could still lie ahead. Wall Street is still wondering whether the Fed has fallen behind in keeping the economy on track for a "soft landing". Traders are pricing in deeper cuts this year than policymakers' "dot plot" projects, per Fed Funds futures.