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Home » The S&P 500 is taking a breather after hitting highs for the year

The S&P 500 is taking a breather after hitting highs for the year

The DOW JONES was up 0.02% to 33,578 points, while the S&P 500 was up 0.03% to 4,284 points. The NASDAQ 100 rose 0.20% to 13,302 points.

Shares rallied during Tuesday’s session. The broad index gained 0.24% to hit its highest level since August 2022, with seven major sectors ending the session with gains. Financials rose 1.3%, led by regional bank stocks and big names like Goldman Sachs and Morgan Stanley.

Meanwhile, the Nasdaq Composite rose 0.36% to close at its highest level since 2023. The Dow Jones Index rose 10.42 points, or 0.03%, under pressure from healthcare stocks Merck and UnitedHealth.

Tuesday’s uptrend lagged last week’s rally. However, continued moderate gains rather than sharp declines after a major rally could bode further good news, believes Adam Sarhan, CEO of 50 Park Investments. “The fact that it refuses to sink seems extremely optimistic to me,” he says. “Usually after a big rally the market pulls back and when the market doesn’t pull back and is trending sideways that’s very bullish to me.”

On the business side, Tesla was up more than 3% in the New York morning after an update on the electric vehicle maker’s website showed it New Model 3 and Model Y cars are eligible for a $7,500 tax credit under the Reduction of Inflation Act.

As for analyst recommendations, JP Morgan experts raised Netflix’s target price, citing the company’s efforts to limit password sharing on its platform. According to the broker, this measure could boost sales growth. Netflix shares are up more than 3%.

Shares of Dave & Buster rose nearly 4% pre-opening after the entertainment company last night reported first-quarter results that beat Wall Street expectations. The company posted earnings of $1.45 per share, up 21 cents from the $1.24 analysts were expecting. Dave & Buster’s posted sales of $597 million for the period, slightly below the expected $602 million.

Stitch Fix’s shares also rallied after some financial statements showed smaller losses than the market had feared. The small online clothing and styling company with a market cap of around $414 million posted a loss of 19 cents a share on sales of $395 million. Analysts had expected a loss of 30 cents a share on total sales of $389 million.

Stitch Fix said it would look into exiting the UK market in fiscal 2024.

Campbell Soup and GameStop accounts will also be announced this Wednesday.

Even today, investors need to pay attention to the Coinbase price. The cryptocurrency exchange is attempting a tentative recovery after yesterday’s 12% drop. The SEC sued Coinbase on Tuesday, alleging that the company operates as an unregistered exchange and broker. Ark Invest’s Cathie Wood bought the Coinbase crash.

With a loose macro agenda barely including April’s trade balance and weekly mortgage numbers, investors’ attention is already turning to next week’s Federal Reserve meeting.

Market consensus expected The Fed is leaving interest rates unchanged at next week’s meeting, although rate hikes could continue in July with another 25-point hike. However, much will depend on the inflation readings and employment figures that will be released in the coming days.

The Fed’s hiatus could provide a boost to technology stocks, which are among the big stars this year, thanks in large part to the artificial intelligence boom. at present, Citigroup analysts see further potential: “We remain positive on growth in June as we see more tailwinds than headwinds for this style next month,” a team that included Chris Montagu wrote in a note. However, he warned that the gains in stock indexes were due to the fall in equities in May, which poses a risk.

In fixed income, US Treasury yields fell slightly on Wednesday as investors scrutinized the outlook for the economy and central bank interest rates, and looked to economic data for clues. The 10-year bond yield falls 2 basis points to 3.677%. The two-year yield slips another two points to 4.504%.

In commodities markets, oil prices are rebounding, with austerity promises by Saudi Arabia weighing more on investor sentiment than doubts raised by recent macroeconomic benchmarks from China, the world’s largest importer. US West Texas oil futures rose 0.65% to $72.36 a barrel, while benchmark European crude Brent rose 0.55% to $76.84.

The euro appreciated 0.16% against the dollar to settle at $1.0713 for each common currency.

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