Skip to main content

S&P 500

 

The S&P 500 and Nasdaq rose on Tuesday as banks led a rally in economically sensitive sectors, while investors awaited inflation data and the Federal Reserve's policy meet next week.

 

Inflation data is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated, while the Fed is widely expected to hold interest rates.

 

Financials rose 1.2% to lead gains among the 11 major S&P 500 sectors, while the KBW regional banking index jumped 6.1%. The Russell 2000 index of small-cap companies added 2.8%.

 

"You are seeing cyclical parts of the market like financials, machinery, consumer discretionary having some market leadership which is good to see," said Matt Stucky, senior portfolio manager at Northwestern (NASDAQ:NWE) Mutual Wealth Management Company.

 

"If this were to continue, that would probably be a good sign that the trajectory that the market this year is on a more sustainable path."

 

The benchmark S&P 500 has bounced almost 20% from its October 2022 lows, boosted by gains in megacap stocks, a stronger-than-expected earnings season and hopes that the U.S. central bank is nearing the end of its interest rate-hike cycle.

 

Recent economic data and dovish remarks from the Fed officials have raised the odds of the Fed holding interest rates at its June 13-14 meeting.

 

Fed fund futures indicate traders have priced in a near 80% chance that the central bank will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool. However, they see 50% odds of another 25-basis-point rate hike in July.

 

At 12:24 p.m. ET, the Dow Jones Industrial Average was down 36.20 points, or 0.11%, at 33,526.66, the S&P 500 was up 5.73 points, or 0.13%, at 4,279.52, and the Nasdaq Composite was up 47.14 points, or 0.36%, at 13,276.57.

 

The CBOE volatility index hit its lowest since July 2021, down 0.5 point at 14.27.

 

Coinbase (NASDAQ:COIN) Global plunged 11.1% after the U.S. Securities and Exchange Commission sued the crypto exchange, accusing it of illegally operating without having first registered with the regulator.

 

Apple Inc (NASDAQ:AAPL) extended losses to slip 0.6%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta.

 

Advanced Micro Devices (NASDAQ:AMD) rose 4.6% after Piper Sandler raised the price target on the stock to $150, the second highest on Wall Street, as per Refintiv data.

 

Advancing issues outnumbered decliners by a 3.49-to-1 ratio on the NYSE and by a 2.70-to-1 ratio on the Nasdaq.

 

The S&P index recorded 14 new 52-week highs and four new lows, while the Nasdaq recorded 86 new highs and 52 new lows.

Labels:
Location: United States

Comments

Post a Comment

Popular posts from this blog

USD/JPY Slides as US Producer Price Index Misses Expectations

The USD/JPY currency pair experienced a decline during the New York session, losing over 60 pips and trading at the 139.35 area. This drop was largely attributed to the Greenback facing significant selling pressure following the release of the US Producer Price Index (PPI) data, which revealed lower-than-expected 'factory gate' inflation. The weakening of US bond yields, along with a surge in stock prices, favored the JPY and contributed to the downward pressure on the USD. The PPI report, released by the US Bureau of Labor Statistics, indicated a monthly decrease of 0.3% in May, surpassing the anticipated 0.1% decline. Additionally, the year-on-year measure fell to 1.1%. Conversely, the Core PPI figure matched expectations, rising by 0.2% on a monthly basis, with the yearly measure standing at 2.8%. These disappointing PPI figures led to a decline in US bond yields across the curve, thereby further weighing on the USD. The 10-year bond yield fell to 3.79%, while the 2-year yie...
Post a Comment
Read more

Gold: Market Volatality (May, 2023)

  Gold experienced a notable pullback in May, frustrating many traders who had anticipated a strong seasonal trend. This decline was primarily driven by significant selling of gold futures in response to a sharp rally in the US dollar, which was partly fueled by hawkish comments from top Federal Reserve (Fed) officials. When these officials advocate for additional interest rate hikes, it tends to boost the dollar and trigger selling of gold futures. However, it is crucial for traders to not only observe the movements in gold or the US Dollar Index but also understand the underlying reasons for these fluctuations. Recently, Fedspeak has played an increasingly influential role in shaping market dynamics.   In early May, gold's upward momentum gained strength, surging 26.3% in a span of 7.2 months to reach $2,050 per ounce on the 4th. This level was in close proximity to the metal's previous all-time closing high of $2,062 in early August 2020. The latest peak in gold prices ...
Post a Comment
Read more

Federal Budget Strategy 2023-24 Pakistan

  Introduction: The upcoming federal budget of Pakistan for 2023-24 holds significant importance, with speculations ranging from an election-focused budget filled with tax breaks and subsidies to a budget driven by the need for structural reforms and adherence to the International Monetary Fund (IMF) agreement. Striking a balance between these opposing pressures, the government must adopt a more nuanced budget strategy that encompasses progressive taxation, resource mobilization, and expenditure containment. This article aims to present a comprehensive budget strategy that creates fiscal space for providing relief to segments of the population severely impacted by unemployment and high inflation.   Budget Targets for 2022-23: The ambitious federal budget for 2022-23 was formulated in consultation with the IMF, embodying key targets outlined in the IMF Staff statement following the completion of several reviews. The targets included a projected 5% economic growth rate, ...
Post a Comment
Read more