Stock market today: Indexes edge lower after hitting records on cooling inflation

• US stocks dipped on Friday after the S&P 500 and Nasdaq 100 reached record highs four days in a row.
• Outgoing Fed President Loretta Mester told CNBC that recent disinflation data was welcomed.

US stocks took a breather from this week's rally and edged lower on Friday after the S&P 500 and Nasdaq 100 hit record highs four days in a row.

The surge in stocks this week has been fueled by a marked cooldown in inflation, as evidenced by the consumer price index and producer price index reports for May.

Friday's decline in stocks was preceded by a sharp decline in European stocks, as recent election results continue to make waves in France and Germany.

The Euro Stoxx 50 Index fell about 2%, while the German DAX Index fell just over 1.2%.

Investors will turn their attention to the release of preliminary consumer sentiment data at 10:00 a.m. on Friday from the University of Michigan. Economists expect a reading of 71.5, compared to a prior reading of 69.1.

Finally, comments from Federal Reserve Presidents Loretta Mester and Austan Goolsbee will be closely monitored later this afternoon.

Mester told CNBC Friday morning that the renewed decline in inflation is welcomed news and that it's important that the Fed does not wait too long to cut interest rates.

The market currently expects the Fed to begin cutting interest rates at its September FOMC meeting.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:

• S&P 500: 5,416.38, down 0.31%
• Dow Jones Industrial Average: 38,498.12, down 0.39% (-148.95 points)
• Nasdaq composite: 17,616.67, down 0.29%

Here's what else is going on today:

• Tesla CEO Elon Musk's $50 billion pay package was overwhelmingly approved by shareholders.
• At Tesla's annual shareholder meeting, Musk argued that Tesla could one day be worth as much as $30 trillion.
• Broadcom is the next stock that could enter the trillion-dollar club, according to Bank of America.
• Jeremy Siegel said the tech momentum trade that is pushing the stock market higher could last a lot longer than most people think.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil rose 0.46% to $78.98 a barrel. Brent crude, the international benchmark, was higher by 0.62% to $83.26 a barrel.
• Gold edged higher by 1.17% to $2,345.20 per ounce.
• The 10-year Treasury yield dropped two basis points to 4.22%.
• Bitcoin rose 0.74% to $67,236.