Although the excitement over rate cuts subsided on Friday, US markets ended the day neutral. However, the Dow Jones Industrial Average (^DJI) managed to close above 42,000 once more, setting a new milestone.

Following Thursday's record-breaking closing of the benchmark index, the S&P 500 (^GSPC) saw a 0.2% decline. The tech-focused Nasdaq Composite (^IXIC) ended the day 0.4% down.

Even though Friday's trading was quiet, the major averages ended the week higher. A large portion of those gains were the result of the market's rally on Thursday, when investors welcomed Chair Jerome Powell's assertion that the Federal Reserve dropped interest rates significantly to assist the economy rather than to preserve it. This assertion was supported by statistics on unemployment claims.

That thunderous rise fizzled down on Friday as warnings that economic dangers might still be present. Wall Street continues to question if the Fed is doing enough to keep the economy headed toward a "soft landing." Fed funds futures indicate that traders are pricing in greater cuts this year than the "dot plot" plans of policymakers.

Additionally, as per a prominent Bank of America strategist, the risk of a bubble is being fanned by the Fed's high spirits. According to Michael Hartnett, current levels of policy easing and earnings growth are priced into markets, encouraging investors to chase gains.

With less than an hour remaining in trade, shares of Intel (INTC) surged following news from The Wall Street Journal that Qualcomm, a major player in the semiconductor industry, had approached the chipmaker recently regarding a potential acquisition. The stock of Qualcomm (QCOM) fell about 3%.

FedEx reported a steep decline in profit, below Wall Street forecasts. The delivery company's stock fell, which is a sign of a healthy economy.

In other news, the sportswear manufacturer Nike (NKE) saw a spike in stock price following the appointment of a new CEO notwithstanding declining sales.