Stock Market Update: Latest News on Dow, Nvidia, Apple, GameStop, Southwest Airlines, Tesla, AMD, and More
Stocks are showing uncertainty on Monday following a positive jobs report last week that reduced expectations of a Federal Reserve interest rate cut. The Fed will announce its decision on Wednesday, coinciding with the release of new consumer price index data. Despite earlier hopes for rate cuts, inflation has remained steady and economic growth has not slowed significantly.
Traders now predict that the Fed will delay any rate cuts until at least September, according to the CME FedWatch tool. Additionally, traders are eagerly awaiting updates from Apple’s Worldwide Developers Conference.
In Monday’s trading session, the Nasdaq Composite was leading the major stock indexes, driven by strong performances from chip stocks. The Nasdaq was up 0.2%, while the S&P 500 saw modest gains and the Dow was down by 0.2%.
Notable sector performances include energy, which was the top gainer in the S&P 500, and technology, led by companies like First Solar, Super Micro Computer, Lam Research, and Enphase Energy. The iShares Semiconductor ETF also saw a 1.2% increase, with Nvidia stock rising by 0.7%.
The current debate in the stock market revolves around the Federal Reserve’s ability to achieve a “soft landing” by controlling inflation without causing a recession. However, concerns arise if there is no landing at all. The strong job report for May alleviated some economic worries but also pushed back expectations for rate cuts.
BofA Global Research strategist Ohsung Kwon believes that stronger economic growth can benefit the market as long as inflation remains under control. He anticipates a robust second-half earnings acceleration, which could lead to further gains in stocks.