Stocks on Wall Street reached new highs on Tuesday, with the S&P 500 and Nasdaq composite setting records despite a mixed overall close. The market’s performance was driven by gains in tech stocks, particularly Apple, which surged 7.3% after announcing its foray into artificial intelligence technology.
The Dow Jones Industrial Average lagged behind, slipping slightly as investors awaited key events later in the week. The U.S. is set to release updates on inflation at both the consumer and wholesale levels, while the Federal Reserve will announce its latest interest rate policy decision.
Market expectations are focused on the government’s consumer price index, which is forecasted to remain unchanged at 3.4% in May. The Fed, which has kept interest rates at their highest level in over two decades, is under pressure to address inflation and potentially make rate cuts to stimulate economic growth.
Data on the economy have been mixed, with concerns about sticky inflation and high interest rates. However, the strong jobs market and consumer spending have provided some support. Retailers are warning of potential impacts on earnings and revenue, while the jobs market shows signs of cooling.
In other news, General Motors announced a $6 billion stock buyback, while Calavo Growers saw a jump in its stock price after beating analysts’ forecasts. Banks, on the other hand, weighed down the market, with Fifth Third Bancorp cutting its revenue growth forecast and JPMorgan and Citigroup seeing declines.
Affirm Holdings rose 11% after news of its integration into Apple Pay, while Paramount Global, the media company behind Paramount Studios and CBS, dropped following failed merger talks with Skydance Media.
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 further economic data and the Fed’s decision on interest rates.
Contributions to this report were made by AP writers Zimo Zhong, Matt Ott, and Alex Veiga.
