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Wall Street closed mixed on Tuesday as market participants were assessing the Fed decision regarding the trajectory of the benchmark interest rate in 2024. Investors were also watching mixed economic data. The Nasdaq Composite surged while the Dow tumbled last day. The S&P 500 ended
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.6% or 216.73 points to close at 38,852.86. 20 components of the 30-stock index ended in negative territory, while 10 in positive zone.
The tech-heavy Nasdaq Composite finished at 17.019.88, rising 0.6% due to strong performance by U.S. technology behemoths. The tech-laden index recorded its first ever closing above the crucial technical barrier of 17,000. In intraday day trading, Nasdaq Composite posted an all-time high of 17,032.66.
The S&P 500 gained 1.32 points to finish at 5,306.04. Eight out of 11 broad sectors of the broad-market index ended in negative territory, while three in positive zone. The Financials Select Sector SPDR (XLF), the Industrials Select Sector SPDR (XLI) and the Health Care Select Sector SPDR (XLV) declined 1.1%, 1.2% and 1.2%, respectively. On the other hand, the Energy Select Sector SPDR (XLE) advanced 1%.
The fear-gauge CBOE Volatility Index (VIX) was up 4.5% to 12.92. A total of 11.91 billion shares were traded on Tuesday, lower than the last 20-session average of 12.32 billion. Decliners outnumbered advancers on the NYSE by a 1.75-to-1 ratio. On Nasdaq, a 1.34-to-1 ratio favored declining issues.
Semiconductors Gain
The Philadelphia Semiconductor Index (SOX) rose 1.9% buoyed by blockbuster first-quarter fiscal 2025 earnings results of NVIDIA Corp. (NVDA - Free Report) . NVIDIA ensures artificial intelligence (AI) frenzy is yet to unfold. The AI market has gathered pace in the past few years buoyed by the rapid penetration of digital technologies and the Internet. These astonishing results were primarily due to sky-high shipments of NVIDIA’s Hopper graphics processors, especially H100 GPU.
The CME FedWatch currently assigned a 56% probability that the Fed will cut the benchmark lending rate by 25 basis points in November and a 77.5% chance that the fed fund rate will be reduced by 25 basis points in December. Expectations of more than one rate cut is a distant possibility now.
Economic Data
The Conference Reported that the consumer confidence index for May came in at 102%, beating the consensus estimate of 96%. The metric for April was revised upward to 97.5% from 97% reported earlier. The Present Situation sub-index—based on consumers’ assessment of current business and labor market conditions—increased to 143.1% in May from 140.6% in April.
The Expectations sub-index—based on consumers’ short-term outlook for income, business, and labor market conditions—rose to 74.6% in May from 68.8% last month. However, the metric stayed below 80%, the threshold which usually signals a recession ahead.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 6.5% annual gain for March, the same increase as the previous month. The 10-City Composite saw an increase of 8.2%, up from an 8.1% increase in the previous month. The 20-City Composite posted a slight year-over-year increase to 7.4%, up from a 7.3% increase in the previous month.
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Stock Market News for May 29, 2024
Wall Street closed mixed on Tuesday as market participants were assessing the Fed decision regarding the trajectory of the benchmark interest rate in 2024. Investors were also watching mixed economic data. The Nasdaq Composite surged while the Dow tumbled last day. The S&P 500 ended
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.6% or 216.73 points to close at 38,852.86. 20 components of the 30-stock index ended in negative territory, while 10 in positive zone.
The tech-heavy Nasdaq Composite finished at 17.019.88, rising 0.6% due to strong performance by U.S. technology behemoths. The tech-laden index recorded its first ever closing above the crucial technical barrier of 17,000. In intraday day trading, Nasdaq Composite posted an all-time high of 17,032.66.
The S&P 500 gained 1.32 points to finish at 5,306.04. Eight out of 11 broad sectors of the broad-market index ended in negative territory, while three in positive zone. The Financials Select Sector SPDR (XLF), the Industrials Select Sector SPDR (XLI) and the Health Care Select Sector SPDR (XLV) declined 1.1%, 1.2% and 1.2%, respectively. On the other hand, the Energy Select Sector SPDR (XLE) advanced 1%.
The fear-gauge CBOE Volatility Index (VIX) was up 4.5% to 12.92. A total of 11.91 billion shares were traded on Tuesday, lower than the last 20-session average of 12.32 billion. Decliners outnumbered advancers on the NYSE by a 1.75-to-1 ratio. On Nasdaq, a 1.34-to-1 ratio favored declining issues.
Semiconductors Gain
The Philadelphia Semiconductor Index (SOX) rose 1.9% buoyed by blockbuster first-quarter fiscal 2025 earnings results of NVIDIA Corp. (NVDA - Free Report) . NVIDIA ensures artificial intelligence (AI) frenzy is yet to unfold. The AI market has gathered pace in the past few years buoyed by the rapid penetration of digital technologies and the Internet. These astonishing results were primarily due to sky-high shipments of NVIDIA’s Hopper graphics processors, especially H100 GPU.
The stock price of NVIDIA jumped 7%. Consequently, stock prices of other semiconductor giants like Micron Technology Inc. (MU - Free Report) , Advanced Micro Devices Inc. (AMD - Free Report) and QUALCOMM Inc. (QCOM - Free Report) advanced 2.5%, 3.2% and 1.3%, respectively. NVIDIA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rate Cut Hope Evaporates
The CME FedWatch currently assigned a 56% probability that the Fed will cut the benchmark lending rate by 25 basis points in November and a 77.5% chance that the fed fund rate will be reduced by 25 basis points in December. Expectations of more than one rate cut is a distant possibility now.
Economic Data
The Conference Reported that the consumer confidence index for May came in at 102%, beating the consensus estimate of 96%. The metric for April was revised upward to 97.5% from 97% reported earlier. The Present Situation sub-index—based on consumers’ assessment of current business and labor market conditions—increased to 143.1% in May from 140.6% in April.
The Expectations sub-index—based on consumers’ short-term outlook for income, business, and labor market conditions—rose to 74.6% in May from 68.8% last month. However, the metric stayed below 80%, the threshold which usually signals a recession ahead.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 6.5% annual gain for March, the same increase as the previous month. The 10-City Composite saw an increase of 8.2%, up from an 8.1% increase in the previous month. The 20-City Composite posted a slight year-over-year increase to 7.4%, up from a 7.3% increase in the previous month.