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The S&P 500 surpassed 5,600 for the first time and closed at a record high on Wednesday after Fed Chair Jerome Powell cautioned about the risks involved in keeping interest rates at elevated levels for a considerable period. The broader index has now notched its 37th record close this year. The 30-stock Dow and the tech-laden Nasdaq also ended in the green as the Fed is contemplating a less aggressive stance.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1.1% or 429.39 points to close at 39,721.36. Notably, 28 components of the 30-stock index ended in positive territory, while two ended in negative zone. The major gainer of the Dow was The Home Depot, Inc. (HD - Free Report) . The stock price of this retailer rose 2.1%. The Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
The tech-heavy Nasdaq Composite gained 164.46 points, or 1.2%, to close at 18,647.45.
The S&P 500 advanced 1%, to close at 5,633.91. All 11 broad sectors of the benchmark index closed in the green. The Materials Select Sector SPDR (XLB), the Technology Select Sector SPDR (XLK) and the Health Care Select Sector SPDR (XLV) rose 1.3%, 1.5% and 1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 2.7% to 12.85. A total of 9.73 billion shares were traded on Wednesday, lower than the last 20-session average of 11.57 billion. The S&P 500 posted 33 new 52-week highs and 11 new lows; the Nasdaq Composite recorded 65 new highs and 117 new lows.
CPI Data in Focus
Federal Reserve Chair Jerome Powell wrapped up his two-day testimony, drawing attention to the upcoming release of the Consumer Price Index (CPI) data. During his appearance, before the House Financial Services Committee, Powell discussed the cooling of the U.S. Labor market and suggested that the central bank might be nearing its first rate cut after months of speculation.
Powell stressed that the Federal Reserve is carefully weighing the risks associated with inflation and rising unemployment as it considers adjusting the Fed funds rate, which is currently at a 23-year high. The forthcoming CPI data for June is set to be released on Thursday and Friday's wholesale inflation figures will shape the Fed's monetary policy decisions. Market indicators from the CME FedWatch suggested that there is an expectation of two rate cuts by the year-end, with a growing likelihood of three cuts being factored into forecasts.
Economic Data
The U.S. Census Bureau reported that wholesale inventories rose 0.6% in May. The number for April was revised upward to a 0.2% rise from the previously reported 0.1% increase.
Per a government report, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) for the week ended Jul 5, 2024, decreased by 3.4 million barrels from the previous week. The number from the previous week remained unrevised at a decrease of 12.2 million barrels.
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Stock Market News for July 11, 2024
Market News
The S&P 500 surpassed 5,600 for the first time and closed at a record high on Wednesday after Fed Chair Jerome Powell cautioned about the risks involved in keeping interest rates at elevated levels for a considerable period. The broader index has now notched its 37th record close this year. The 30-stock Dow and the tech-laden Nasdaq also ended in the green as the Fed is contemplating a less aggressive stance.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1.1% or 429.39 points to close at 39,721.36. Notably, 28 components of the 30-stock index ended in positive territory, while two ended in negative zone. The major gainer of the Dow was The Home Depot, Inc. (HD - Free Report) . The stock price of this retailer rose 2.1%. The Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
The tech-heavy Nasdaq Composite gained 164.46 points, or 1.2%, to close at 18,647.45.
The S&P 500 advanced 1%, to close at 5,633.91. All 11 broad sectors of the benchmark index closed in the green. The Materials Select Sector SPDR (XLB), the Technology Select Sector SPDR (XLK) and the Health Care Select Sector SPDR (XLV) rose 1.3%, 1.5% and 1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 2.7% to 12.85. A total of 9.73 billion shares were traded on Wednesday, lower than the last 20-session average of 11.57 billion. The S&P 500 posted 33 new 52-week highs and 11 new lows; the Nasdaq Composite recorded 65 new highs and 117 new lows.
CPI Data in Focus
Federal Reserve Chair Jerome Powell wrapped up his two-day testimony, drawing attention to the upcoming release of the Consumer Price Index (CPI) data. During his appearance, before the House Financial Services Committee, Powell discussed the cooling of the U.S. Labor market and suggested that the central bank might be nearing its first rate cut after months of speculation.
Powell stressed that the Federal Reserve is carefully weighing the risks associated with inflation and rising unemployment as it considers adjusting the Fed funds rate, which is currently at a 23-year high. The forthcoming CPI data for June is set to be released on Thursday and Friday's wholesale inflation figures will shape the Fed's monetary policy decisions. Market indicators from the CME FedWatch suggested that there is an expectation of two rate cuts by the year-end, with a growing likelihood of three cuts being factored into forecasts.
Economic Data
The U.S. Census Bureau reported that wholesale inventories rose 0.6% in May. The number for April was revised upward to a 0.2% rise from the previously reported 0.1% increase.
Per a government report, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) for the week ended Jul 5, 2024, decreased by 3.4 million barrels from the previous week. The number from the previous week remained unrevised at a decrease of 12.2 million barrels.