Investors wait for price index
Nvidia makes strong recovery after sell-off
25.06.2024, 22:48
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After profit-taking and a price slide, Nvidia is once again interesting for beginners. While tech stocks are catching up overall, the Dow is closing in the red. Investors are keeping their feet still ahead of the release of important inflation data on Friday.
The US stock markets closed mixed in the evening. Dow Jones Index closed 0.8 percent lower at 39,112 points. This was burdened by losses from Walmart (-2.2%), Home Depot (-3.6%) and Dow (-2.7%). The S&P 500 rose by 0.4 percent, while the Nasdaq Composite even increased by 1.3 percent. There were a total of 1,007 (Monday: 1,934) price winners and 1,784 (864) losers. 92 (89) stocks closed unchanged. Overall, investors were rather cautious, as the eagerly awaited PCE price index – the US Federal Reserve’s preferred inflation measure – is not published until Friday. Economists are predicting by consensus that price increases have weakened. This could make an interest rate cut in September more likely.
Fed Governor Michelle Bowman, meanwhile, may be prepared to vote for the US central bank to raise interest rates. “I remain prepared to raise the target range for the federal funds rate at a future meeting if progress on inflation stalls or even reverses,” she said, according to the published text of her speech. According to Governor Lisa Cook, the timetable for a rate cut by the Federal Reserve is uncertain and data-dependent. “With significant progress on inflation and a gradually cooling labor market, at some point it will be appropriate to reduce the level of monetary policy restrictions to maintain a healthy balance in the economy,” Cook said. She did not specify a specific path.
On the economic side, the Chicago Fed National Activity Index was published. It recovered in May to a level of +0.18 from -0.26 in the previous month. Meanwhile, as expected, the mood among US consumers weakened in June. The consumer confidence index fell to 100.4. Economists had expected a level of 100.0. The previous month’s value was revised downwards to 101.3 from an initial 102.0.
Nvidia with significant increases – Carnival with price jump
Stocks in the technology sector in particular regained some lost ground. NVIDIAwhich were sold off heavily in the wake of profit-taking over the past three trading days and lost around 13 percent, rose by 6.8 percent. Since the beginning of the year, however, the AI icon’s price gains still total around 140 percent. Super Micro Computer recovered by 1.9 percent. Arm Holdings gained 6.3 percent.
The share of Microsoft recorded share price gains of 0.7 percent, although the EU Commission announced that it was investigating preliminary suspicions of cartel activity at the company. The Commission is investigating whether Microsoft may have hindered competition in the EU by bundling Teams with its productivity software. Ford (-1.2%) is recalling more than half a million pickups of its popular F-150 model because their transmissions can inadvertently downshift into first gear regardless of speed.
After presenting convincing business figures, the cruise shipping company’s share price Carnival by 8.9 percent. Meanwhile, SolarEdge Technologies by 20.6 percent. The company announced the issuance of convertible bonds in a private placement and disclosed in a separate announcement that a customer owing Solaredge $11.4 million through a secured promissory note recently filed for bankruptcy.
Dollar slightly firmer – oil prices fall
On the foreign exchange market, the dollar somewhat firmer. The dollar index rose by 0.2 percent. The US currency is benefiting from a slight weakness in the euro, according to the foreign exchange market. Due to the uncertainty ahead of the new elections in France, analysts at ING do not believe that the euro has any sustained appreciation potential.
The US bond market showed Returns little changed after the previous day’s declines. The yield on 10-year bonds rose by 0.2 basis points to 4.24 percent. Allianz Global Investors is maintaining its long positions in ten-year US Treasuries in its multi-asset portfolios and also pointed to market concerns about the possible outcome of the French elections.
The Oil prices fell after rising at the beginning of the week. Prices for WTI and Brent fell by up to 1.2 percent. Market participants, however, see prices well supported by the increasing demand for fuels during the summer holiday season. Gold price gave up the previous day’s gains with the stronger dollar. The price for the troy ounce fell by 0.6 percent.
You can find out more about today’s stock market events here.