Title: Tech Stocks Drive S&P 500 and Nasdaq to Record Highs Ahead of Key Inflation Report
In a mixed day of trading on Wall Street, the S&P 500 and Nasdaq composite managed to reach new record highs on Tuesday. The subdued market activity came as investors awaited a key inflation report and the Federal Reserve’s upcoming interest rate policy decision.
The S&P 500 rose by 0.3% to 5,375.32, with tech stocks leading the gains despite more stocks falling than rising within the index. The Nasdaq composite surged by 0.9% to 17,343.55, setting record highs for the second consecutive day.
Apple played a significant role in driving the market higher, with a 7.3% surge following its focus on artificial intelligence technology. However, the Dow Jones Industrial Average lagged behind, slipping by 0.3% to 38,747.42.
Investors are closely watching the upcoming inflation report, with expectations that the consumer price index will remain unchanged at 3.4% in May. The Federal Reserve is also set to announce its latest interest rate decision, with hopes for potential rate cuts later in the year.
The market is anticipating the Fed’s latest forecasts on interest rates and the economy, with expectations that the current projection of three rate cuts in 2024 will likely be adjusted. Mixed economic data and concerns about inflation have been driving market sentiment, with hopes for a controlled slowdown that avoids a recession.
Despite worries about inflation and high interest rates, the stock market has been rallying to new highs, supported by a strong jobs market and consumer spending. However, concerns about consumer stress, particularly among lower-income individuals, have been raised by retailers warning of potential impacts on earnings and revenue.
In Tuesday’s trading, General Motors and Calavo Growers saw gains, while banks like Fifth Third Bancorp, JPMorgan, and Citigroup weighed on the market. Affirm Holdings rose on news of integration with Apple Pay, while Paramount Global faced a decline following failed merger talks.
Overall, Treasury yields fell in the bond market, and stocks in Europe declined while stocks in Asia were mixed. The market remains cautiously optimistic as investors await key economic data and Fed decisions in the coming days.
___
AP writers Zimo Zhong, Matt Ott, and Alex Veiga contributed to this report.
