NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Asian shares are mixed, with China stocks down, after Wall St retreat

Asian shares are trading mixed, as investor sentiment in Tokyo was boosted by news in the U.S. about soaring Nvidia earnings.

apnews.com

Wall Street retreats from its records as worries about high interest rates weigh​

By STAN CHOE
Updated 7:05 AM GMT+10, May 23, 2024

NEW YORK (AP) — U.S. stock indexes retreated from their records Wednesday as concerns about high interest rates weighed on the market.

The S&P 500 fell 14.40 points, or 0.3%, to 5,307.01, a day after setting its latest all-time high. The Dow Jones Industrial Average sank 201.95, or 0.5%, to 39,671.04, and the Nasdaq composite slipped 31.08, or 0.2%, to 16,801.54 after after setting its latest record.

Indexes had been close to flat early in the day, but they slunk lower after the Federal Reserve released the minutes of its last policy meeting. Discouragingly for markets, the minutes showed Fed officials suggesting it “would likely take longer than previously thought” to get inflation fully under control following disappointingly high readings at the start of the year.

And even though Fed Chair Jerome Powell said after that meeting that the Federal Reserve is more likely to cut rates than to hike them, the minutes said “various participants” were willing to raise rates if inflation worsens. That cut at the rekindled hopes on Wall Street that the Fed will be able to cut its main interest rate at least once this year.

One of the market’s worst losses came from Target, which tumbled 8% after the retailer reported profit for the latest quarter that fell short of analysts’ expectations. It also gave forecasted ranges for upcoming profit where the midpoints fell below analysts’ estimates, as it said customers are holding back on purchases of non-essentials. Earlier this week, Target said it was cutting prices on thousands of everyday basics to entice customers struggling with still-high inflation.

Lululemon Athletica sank 7.2% after it said its chief product officer, Sun Choe, is leaving the company this month to “pursue another opportunity.” The company announced a new organizational structure where it won’t replace the role of chief product officer.

They helped to counter a 17.6% leap for Petco Health & Wellness, which reported results and revenue for the latest quarter that were better than analysts feared.

TJX, the off-price retailer, rose 3.5% after topping profit expectations. The company behind TJ Maxx and Marshalls also raised its forecast for earnings per share over the full year, saying its prices are helping to attract customers.

In the bond market, the yield on the 10-year Treasury rose to 4.42% from 4.41% late Tuesday. The two-year yield, which moves more closely with expectations for the Fed, rose a bit more. It climbed to 4.87% from 4.84%.

Helping to keep the move in yields in check was the fact that the harsh talk in the minutes from the Fed’s latest meeting was from May 1. That was before some reports showed softening in inflation and certain parts of the U.S economy, which may have changed the minds of some Fed officials.

In recent speeches since that May 1 meeting, some Fed officials have indeed called those recent reports encouraging. But they have also said they still need to see months more of improving data before they could cut the federal funds rate, which is sitting at its highest level in more than 20 years.

The Fed is trying to pull off a tightrope walk where it slows the economy just enough through high interest rates to get inflation under control but not so much that it causes a bad recession.

High rates have made everything from credit-card bills to auto-loan payments more expensive. Mortgage rates are also high, and a report on Wednesday showed sales of previously occupied homes were weaker last month than economists expected.

Central banks around the world seem eager to cut interest rates, but “they may not go far” given how well economies are doing and how high inflation still is, according to Athanasios Vamvakidis, a strategist at Bank of America. He said in a BofA Global Research report that he expects only shallow cuts to interest rates, which may also come later than financial markets seem to be forecasting.

In stock markets abroad, indexes were modestly lower across much of Europe and Asia.

London’s FTSE 100 sank 0.5% after the U.K. Office for National Statistics announced a stronger-than-expected inflation reading that hurt hopes for a rate cut in June. Tokyo’s Nikkei 225 fell 0.8% after Japan reported its trade deficit rose last month.

ASX 200 expected to fall​

The Australian share market looks set for a tough session on Thursday following a poor night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 74 points or 0.9% lower this morning.

In the United States, U.S. stock indexes retreated from their records Wednesday as concerns about high interest rates weighed on the market.

The S&P 500 fell 14.40 points, or 0.3%, to 5,307.01, a day after setting its latest all-time high. The Dow Jones Industrial Average sank 201.95, or 0.5%, to 39,671.04, and the Nasdaq composite slipped 31.08, or 0.2%, to 16,801.54 after after setting its latest record.

 

[bigdog]

Stock market today: Asian shares track Wall Street's slide on worries over interest rates

Asian shares are mostly lower after a retreat on Wall Street following strong economic reports that raised the possibility of interest rates staying painfully high.

apnews.com

Wall Street slumps to worst day since April on worries about interest rates​

By STAN CHOE
Updated 7:32 AM GMT+10, May 24, 2024

NEW YORK (AP) — In the latest example of how good news for the economy can be bad for Wall Street, most U.S. stocks slumped Thursday after strong economic reports raised the possibility of interest rates staying painfully high. The weakness was widespread and overshadowed another blowout profit report from market heavyweight Nvidia.

The S&P 500 fell 0.7% for its sharpest drop since April and pulled further from its record set earlier this week. The Dow Jones Industrial Average dropped 605 points, or 1.5%, and the Nasdaq composite slipped 0.4%.

Stocks broadly struggled under the weight of higher yields in the bond market. Treasury yields cranked up the pressure following the stronger-than-expected reports on the U.S. economy, which forced traders to rethink bets about when the Federal Reserve could offer relief to financial markets through lower interest rates.

One report suggested growth in U.S. business activity is running at its fastest rate in more than two years. S&P Global said its preliminary data showed growth improved for businesses not only in the services sector but also in hard-hit manufacturing.

A separate report, meanwhile, showed the U.S. job market remains solid despite high interest rates. Fewer workers applied for unemployment benefits last week than economists expected, an indication that layoffs remain low.

Treasury yields had been close to flat following the joblessness report but turned higher immediately after the report on business activity, which also suggested upward pressure on selling prices remains stubbornly high.

With pressure on inflation coming from both the manufacturing and service sectors, “the final mile down to the Fed’s 2% target still seems elusive,” according to Chris Williamson, chief business economist at S&P Global Market Intelligence.

The Fed is trying to pull off the difficult feat of slowing the economy enough through high rates to get inflation back to 2% but not so much that it forces a painful recession. It’s been holding its main interest rate at the highest level in more than two decades to do so, and Wall Street is itching for some easing.

A hotter-than-expected economy could push the Federal Reserve to wait longer before cutting interest rates, after traders already ratcheted back their earlier, too-optimistic forecasts. What’s worse, it could force the Federal Reserve to ultimately raise rates more and cause a deep recession to get inflation to fully succumb.

Hopes are still high for at least one cut to rates this year. But traders pulled back on some of those bets following Thursday’s reports.

The yield on the 10-year Treasury, which helps set rates for mortgages and other loans, rose to 4.47% from 4.43% late Wednesday. The two-year yield, which more closely tracks expectations for action by the Federal Reserve, climbed to 4.93% from 4.87%.

That helped send stocks of utilities and real-estate companies to some of the market’s sharpest losses. When rates are high, bonds pay more in interest and can peel away income-seeking investors who would otherwise buy utilities or real-estate investment trusts for their high dividends.

American Water Works sank 3.9%, and Boston Properties fell 3.2%.

The sharpest single drop within the S&P 500 came from Live Nation Entertainment, which tumbled 7.8% after the Justice Department accused it and its Ticketmaster business of running an illegal monopoly over live events in the country.

VF Corp., the company behind The North Face, Vans, Timberland and other brands, fell 2.9% after reporting a loss for the latest quarter, along with weaker revenue than analysts expected.

They helped to more than offset a 9.3% leap for Nvidia, which delivered its latest knockout profit report late on Wednesday. Its revenue surged 262% in the latest quarter from a year earlier, and its profit leaped an eye-popping 629%. The company’s chips are helping to train artificial-intelligence systems, and demand for them has been voracious.

Nvidia also increased its dividend as its CEO, Jensen Huang, touted how “the next industrial revolution has begun.”

Concern has grown that Wall Street’s frenzy around the potential for AI has created a bubble where prices have soared too high and expectations have grown too tough. But Nvidia’s continued skyrocketing growth tamped down some of the criticism.

All told, the S&P 500 fell 39.17 points to 5,267.84. The Dow dropped 605.78 to 39,065.26, and the Nasdaq composite fell 65.51 to 16,736.03.

In stock markets abroad, indexes were mixed across Europe and Asia. Japan’s Nikkei 225 rose 1.3% in part on strength for semiconductor-related companies following Nvidia’s powerful profit report.

Indexes fell 1.7% in Hong Kong and 1.3% in Shanghai amid questions about whether a flurry of policies meant to help China’s troubled property sector will end the industry’s crisis.

ASX 200 poised to sink​

The Australian share market looks set to end the week deep in the red following a poor session on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 83 points or 1.1% lower this morning.

In the latest example of how good news for the economy can be bad for Wall Street, most U.S. stocks slumped Thursday after strong economic reports raised the possibility of interest rates staying painfully high. The weakness was widespread and overshadowed another blowout profit report from market heavyweight Nvidia.

The S&P 500 fell 0.7% for its sharpest drop since April and pulled further from its record set earlier this week. The Dow Jones Industrial Average dropped 605 points, or 1.5%, and the Nasdaq composite slipped 0.4%.

All told, the S&P 500 fell 39.17 points to 5,267.84. The Dow dropped 605.78 to 39,065.26, and the Nasdaq composite fell 65.51 to 16,736.03.

 

[bigdog]

Stock market today: Nasdaq sets another record as Wall Street wins back earlier losses

U.S. stocks rose in a bounce back from Wall Street’s worst day since April. The S&P 500 gained 0.7% to win back all its losses from earlier in the week.

apnews.com

Nasdaq sets another record as Wall Street wins back earlier losses​

By STAN CHOE
Updated 7:20 AM GMT+10, May 25, 2024

NEW YORK (AP) — U.S. stocks rose Friday in a bounce back from Wall Street’s worst day since April.

The S&P 500 gained 36.88 points, or 0.7%, to 5,304.72 and won back all its losses from the prior two days. It eked out a tiny gain for the week, enough to extend its weekly winning streak to five, and is sitting just below its record set on Tuesday.

The Dow Jones Industrial Average rose 4.33 points, or less than 0.1%, to 39,069.59, and the Nasdaq composite gained 184.76, or 1.1%, to 16,920.79 and topped its all-time high set earlier this week.

Deckers Outdoor jumped 14.2% for the biggest gain in the S&P 500 after reporting stronger profit and revenue for the latest quarter than expected. The company behind the Hoka, Ugg and Teva brands also gave a forecast for revenue this upcoming fiscal year that was in line with analysts’ expectations.

Ross Stores also lifted the market after leaping 7.8%. The retailer reported better profit for the latest quarter than analysts expected. That was despite its revenue only edging past expectations, as customers continue to hold back on purchases of non-essentials.

CEO Barbara Rentler said several challenges, “including prolonged inflation, continue to squeeze our low-to-moderate income customers’ purchasing power.”

Even though data on the overall, or macro, economy has been showing continued strength for spending by U.S. households, the numbers underneath the surface may not be as encouraging.

“Walmart and Target are telling us that high income consumers are doing fine, but beginning to trade down,” said Brian Jacobsen, chief economist at Annex Wealth Management. “The lower income consumer is struggling. Macro often focuses too much on the average and the average is skewed by the high-end household.”

The market got a bit of a boost Friday from a report showing overall sentiment among U.S. consumers weakened by less in May than preliminary data had suggested. Perhaps more importantly, the report from the University of Michigan also said U.S. consumers’ expectations for inflation in the coming year rose by less in May than earlier feared.

That could help stave off a vicious cycle where high expectations for inflation among U.S. households drive them to behave in ways that only make inflation worse.

Worries about stubbornly high inflation were behind this week’s rocky trading, after indexes set records recently. The weakness began after the Federal Reserve on Wednesday released the minutes from its last policy meeting. It showed some officials talking about the possibility of raising rates if inflation worsens.

Stocks fell further after reports on Thursday indicated the U.S. economy is stronger than expected. Such strength can actually spook Wall Street because it could keep upward pressure on inflation.

That in turn could at least delay the Federal Reserve from giving relief to financial markets through cuts to its main interest rate, which is sitting at the highest level in more than 20 years. The Fed is trying to pull of the difficult feat of slowing the economy enough through high interest rates to stifle high inflation but not so much that it kneecaps the job market.

Goldman Sachs economist David Mericle pushed back his forecast for the Fed’s first cut to rates to September from July, in part due to Thursday’s reports on U.S. business activity and joblessness.

Treasury yields climbed this week on such concerns, but they were mostly stable Friday following the report on consumer sentiment. The yield on the 10-year Treasury slipped to 4.46% from 4.48% late Thursday. The two-year yield, which more closely tracks expectations for action by the Fed, was holding steady at 4.94%.

This week’s bumpiness for stocks came despite another blowout profit report from Nvidia, which has rocketed to become one of Wall Street’s most influential stocks amid a frenzy around artificial-intelligence technology. Fervor around AI had pushed some stocks to heights that critics called overdone, but Nvidia’s eye-popping growth and forecasts for more suggest it could keep going.

Nvidia rose another 2.6% Friday, making it the biggest single force pushing the S&P 500 upward.

Elsewhere on Wall Street, Workday fell 15.3% despite reporting stronger profit for the latest quarter than analysts expected. The company, which helps businesses manage their people and money, gave a forecast for upcoming subscription revenue that fell a bit short of Wall Street’s estimates.

In stock markets abroad, indexes fell across much of Asia and Europe. Indexes sank 1.4% in Hong Kong, 1.3% in Seoul and 1.2% in Tokyo.

 

[bigdog]

ASX 200 expected to rebound​

The Australian share market looks set to rebound on Monday following a strong finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.6% higher.

U.S. stocks rose Friday in a bounce back from Wall Street’s worst day since April.

The S&P 500 gained 36.88 points, or 0.7%, to 5,304.72 and won back all its losses from the prior two days. It eked out a tiny gain for the week, enough to extend its weekly winning streak to five, and is sitting just below its record set on Tuesday.

The Dow Jones Industrial Average rose 4.33 points, or less than 0.1%, to 39,069.59, and the Nasdaq composite gained 184.76, or 1.1%, to 16,920.79 and topped its all-time high set earlier this week.

 

[bigdog]

Americans Memorial Day HOLIDAY ON MONDAY
1. WHY IS MEMORIAL DAY CELEBRATED?
It’s a day of reflection and remembrance of those who died while serving in the U.S. military, according to the Congressional Research Service. The holiday is observed in part by the National Moment of Remembrance, which encourages all Americans to pause at 3 p.m. for a moment of silence.

2. WHAT ARE THE ORIGINS OR MEMORIAL DAY?
The holiday stems from the American Civil War, which killed more than 600,000 service members — both Union and Confederate — between 1861 and 1865.

There’s little controversy over the first national observance of what was then called Decoration Day. It occurred May 30, 1868, after an organization of Union veterans called for decorating war graves with flowers, which were in bloom.

Stock market today: World shares are mostly higher after rebound on Wall St

Shares have advanced in Europe and Asia ahead of Monday's Memorial Day holiday in the United States. Oil prices also rose.

apnews.com

World shares are mostly higher after rebound on Wall St​

By ELAINE KURTENBACH
Updated 7:15 PM GMT+10, May 27, 2024

Shares advanced in Europe and Asia ahead of Monday’s Memorial Day holiday in the United States.

Oil prices also rose.

European shares saw modest gains after the opening while Asian benchmarks gained upward momentum as the day wore on.

Germany’s DAX edged 0.1% higher to 18,713.43 and the CAC 40 in Paris rose 0.2% to 8,107.16. Markets in London were closed for a bank holiday.

The future for the S&P 500 slipped less than 0.1% and that for the Dow Jones Industrial Average fell just over 0.1%.

Tokyo’s Nikkei 225 added 0.7% to 38,900.02 and the Kospi in Seoul jumped 1.2% to 2,722.99.

Australia’s S&P/ASX 200 surged 0.8% to 2,788.30 and the Shanghai Composite index gained 0.8% to 3,124.24 as the government reported corporate profits rose 4.3% year-on-year in January-April.

Hong Kong’s Hang Seng reversed early losses, gaining 1.2% to 18,827.35.

In Taiwan and South Korea, heavy buying of computer chip-related shares pushed benchmarks higher. The Taiex ended 1.1% higher after touching a fresh record. MediaTek, a semiconductor company that provides chips for wireless communications, high-definition television and handheld mobile device jumped 7.5%.

Taiwan Semiconductor Manufacturing Corp. logged a slimmer 0.2% gain.

“The robust global semiconductor cycle is positive for Taiwan’s growth outlook,” Raymond Yeung and Bansi Madhavani of ANZ wrote in a research note. “The global semiconductor cycle is strong thanks to breakthroughs in artificial intelligence applications, cloud computing and 5G telecommunications technology,” it said.

On Friday, the S&P 500 gained 0.7%, winning back all its losses from the prior two days. It eked out a tiny gain for the week, extending its weekly winning streak to five, and is sitting just below its record set on Tuesday.

The Dow inched less than 0.1% higher and the Nasdaq composite gained 1.1%, to 16,920.79, topping an all-time high set earlier in the week.

Nvidia rose another 2.6% Friday, making it the biggest single force pushing the S&P 500 upward.

This week’s bumpiness for stocks came despite another blowout profit report from Nvidia, which has rocketed to become one of Wall Street’s most influential stocks amid a frenzy around artificial-intelligence technology. Fervor around AI had pushed some stocks to heights that critics called overdone, but Nvidia’s eye-popping growth and forecasts for more suggest it could keep going.

The overall U.S. economy has been showing continued strength for spending by U.S. households, but numbers beneath the surface may not be as encouraging.

Worries about stubbornly high inflation were behind last week’s rocky trading, after recent records. The weakness began after the Federal Reserve on Wednesday released minutes from its last policy meeting that showed some officials talking about possibly raising rates if inflation worsens.

Stocks fell further after reports on Thursday indicated the U.S. economy is stronger than expected. Such strength can actually spook Wall Street because it could keep upward pressure on inflation.

In other trading Monday, U.S. benchmark crude oil gained 31 cents to $78.03 per barrel in electronic trading on the New York Mercantile Exchange. It picked up 85 cents on Friday.

Brent crude, the international standard, added 32 cents to $82.16 per barrel.

In currency dealings, the U.S. dollar slipped to 156.94 Japanese yen from 156.99 yen.

The euro rose to $1.0849 from $1.0844.

ASX 200 expected to rise​

The Australian share market is expected to rise again on Tuesday.

According to the latest SPI futures, the ASX 200 is poised to open the day 6 points higher.

NYSE and LONDON on holiday

Rest of World not on holiday

 

[bigdog]

Most of Wall Street slips in quiet trading after returning from a 3-day weekend​

Stock market today: Most of Wall Street slips in quiet trading after returning from a 3-day weekend

Most U.S. stocks fell as a tick higher in bond yields tightened the screws a bit on Wall Street following a three-day weekend.

apnews.com

By STAN CHOE
Updated 7:17 AM GMT+10, May 29, 2024

NEW YORK (AP) — Most U.S. stocks fell in a quiet day of trading Tuesday after a tick higher in bond yields tightened the screws a bit on Wall Street.

Nearly three out of every four stocks fell within the S&P 500. But strength for a handful of highly influential Big Tech stocks nevertheless helped the index hold up overall. It edged higher by 1.32, or less than 0.1%, to 5,306.04.

The Dow Jones Industrial Average fell 216.73 points, or 0.6%, to 38,852.86. The Nasdaq composite rode the strength of tech stocks to rise 99.09 points, or 0.6%, to 17,019.88 and added to its latest all-time high set on Friday.

Nvidia led the way and jumped 7% to bring its gain for the year so far to a whopping 130%. It’s still riding a wave created by its latest blowout profit report from last week, which calmed some of the worries that Wall Street’s frenzy around artificial-intelligence technology has inflated expectations and prices beyond reasonable levels.

U.S. Cellular climbed 12.2% after T-Mobile said it will buy nearly all of the company. The deal is valued at $4.4 billion and includes up to $2 billion in assumed debt. Shares of T-Mobile US added 0.8%.

GameStop jumped 25.2% after it said it raised $933.4 million in cash through a previously announced sale of stock. The company, whose stock price has often moved more on investors’ enthusiasm than any change to its profit prospects, said it could use the cash for acquisitions, investments or other general corporate purposes.

They helped offset drops for health care stocks, which had some of Wall Street’s sharpest losses. Moderna fell 8%, Merck dropped 2.6% and Vertex Pharmaceuticals sank 2.2%.

The majority of other stocks on Wall Street also fell, feeling the effects of a modest rise in Treasury yields. Higher yields can help make payments for everything from mortgages to credit cards more expensive, and they tend to put downward pressure on the economy.

The yield on the 10-year Treasury climbed to 4.54% from 4.47% late Friday. It had been lower in the morning but began trimming its losses after a surprising report showed confidence among U.S. consumers is strengthening. Economists had been expecting it to show a drop in confidence.

Strong spending by U.S. consumers has been one of the main reasons the economy has managed to defy predictions of a recession, at least so far, but some cracks have begun to show. Lower-income households in particular have begun to buckle under the pressure of still-high inflation.

Analysts at Bank of America cut their price target for McDonald’s on Tuesday citing its struggles after hiking its prices more than Wendy’s and other competitors, among other challenges. McDonald’s fell 1.8%.

Yields climbed further Tuesday afternoon following the auction of Treasurys by the U.S. government. The day’s gains cut into the recent easing of Treasury yields, which fell most of this month on hopes that a resumption in the cooldown for inflation will allow the Federal Reserve to cut its main interest rates at least once later this year.

The Fed has been holding the federal funds rate at the highest level in more than two decades in hopes of grinding down on the economy and investment prices enough to get high inflation fully under control. The danger is that if it leaves rates too high for too long, it could kneecap the job market and overall economy. Making it more difficult for the Fed, a premature cut to interest rates could allow inflation to reaccelerate and inflict even more pain on U.S. households.

This upcoming week has several reports that could sway the Fed’s thinking, beyond Tuesday’s on confidence among consumers.

The week’s highlight likely arrives on Friday when the government releases its latest monthly report on spending by households and the incomes that they earned. It will also include the measure of inflation for April that the Federal Reserve prefers to use.

In stock markets abroad, indexes fell modestly across much of Europe and Asia. London’s FTSE 100 slipped 0.8%, and Tokyo’s Nikkei 225 edged down by 0.1%.

ASX 200 expected to fall​

It looks set to be another subdued day for the Australian share market on Wednesday following a mixed start to the week in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.6% lower.

Most U.S. stocks fell in a quiet day of trading Tuesday after a tick higher in bond yields tightened the screws a bit on Wall Street.

Nearly three out of every four stocks fell within the S&P 500. But strength for a handful of highly influential Big Tech stocks nevertheless helped the index hold up overall. It edged higher by 1.32, or less than 0.1%, to 5,306.04.

The Dow Jones Industrial Average fell 216.73 points, or 0.6%, to 38,852.86. The Nasdaq composite rode the strength of tech stocks to rise 99.09 points, or 0.6%, to 17,019.88 and added to its latest all-time high set on Friday.

 

[divs4ever]

Today Markets Switch To "T+1" Settlement: Here's All You Need To Know​

Today Markets Switch To "T+1" Settlement: Here's All You Need To Know | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[bigdog]

Stock market today: Wall Street wilts to trim its May gains as Dow drops 400 points

U.S. stocks fell under the weight of higher yields in the bond market. The S&P 500 dropped 0.7% Wednesday, sinking further from its record set last week.

apnews.com

Wall Street wilts to trim its May gains as Dow drops 400 points​

By STAN CHOE
Updated 7:01 AM GMT+10, May 30, 2024

NEW YORK (AP) — U.S. stocks sank under the weight of higher yields in the bond market on Wednesday.

The S&P 500 dipped 39.09 points, or 0.7%, to 5,266.95 and fell further from its record set last week. It trimmed its gain for May, which had been on track to be its best month since November, as four out of every five stocks in the index dropped.

The Dow Jones Industrial Average lost 411.32, or 1.1%, to 38,441.54, and the Nasdaq composite slipped 99.30, or 0.6%, to 16,920.58 after setting its latest all-time high.

American Airlines Group led a slump for airline stocks after cutting its forecast for profit and other financial targets for the spring. The carrier said fuel costs may be a bit lower than previously thought, but an important revenue trend would likely be as well. Shares fell 13.5%.

ConocoPhillips fell 3.1% after it said it would buy Marathon Oil in an all-stock deal valuing the company at $22.5 billion, including $5.4 billion of net debt. It’s the latest big deal for an industry that’s seen several buyout announcements recently. Marathon Oil rose 8.4%.

Advance Auto Parts sank 11% after its results and revenue for the latest quarter came up just shy of analysts’ expectations. The retailer said the industry has had a slower start to the year than expected.

Another climb in longer-term Treasury yields also weighed on the stock market, and the 10-year yield rose to 4.61% from 4.54% late Tuesday following an auction of $44 billion in seven-year Treasurys. Worries have been rising that meh demand from buyers for Treasurys in such auctions will help drive yields higher.

The 10-year yield is still down for the month, but it’s been creeping higher since dropping below 4.40% in the middle of May. Higher Treasury yields hurt prices for all kinds of investments.

This month’s swings in yields have also come as traders recalibrate their expectations for when the Federal Reserve could begin cutting its main interest rate, which is at its highest level in more than two decades.

Wall Street always yearns for cuts to rates because they can boost prices for investments and remove downward pressure on the economy. But traders have had to delay their too-optimistic forecasts for rate cuts several times this year because inflation has remained stubbornly high.

The Fed is trying to pull off the balancing act of grinding down on the economy just enough through high interest rates to get inflation fully under control, but not so much that it leads to widespread layoffs.

A report from the Fed released Wednesday said that it’s heard from businesses and other contacts around the country that consumers are pushing back against more increases to prices. That in turn is eating into companies’ profits as their own costs for insurance and other expenses continue to rise.

Despite worries about cracks showing in spending by U.S. consumers, particularly those making lower incomes, economists at BNP Paribas expect a healthy job market, slowing inflation and even gains made by some investors in cryptocurrencies to help support the main engine of the economy.

“The US consumer has defied the gravity of high interest rates and inflation,” as well as jitters about an uncertain economy, according to Yelena Shulyatyeva, senior U.S. economist at BNP Paribas.

U.S. stocks have been continuing to set records despite worries about interest rates staying high in part because stocks related to artificial-intelligence technology keep rising. Nvidia’s latest blowout profit report helped drive the frenzy even higher. After briefly dipping in morning trading, it rose 0.8% Thursday for its most modest gain since its profit report..

On the winning side of Wall Street was Dick’s Sporting Goods, which jumped 15.9% after topping analysts’ expectations for profit and revenue in the latest quarter. The retailer also raised its forecast for profit over the full year.

Chewy, an online seller of pet supplies, likewise reported stronger profit for the latest quarter than expected, and its stock jumped 27.1%. The company plans to return up to $500 million to its shareholders by buying back its own stock.

In stock markets abroad, indexes were mostly lower across Asia and Europe. Hong Kong’s Hang Seng fell 1.8%, South Korea’s Kospi dropped 1.7% and France’s CAC 40 fell 1.5%.

Stocks in Shanghai were roughly flat after the International Monetary Fund raised its forecast for China’s economic outlook, saying it expects the No. 2 economy to grow at a 5% annual pace this year. But it also warned that consumer-friendly reforms are needed to sustain strong, high-quality growth.

ASX 200 expected to fall again​

The Australian share market looks set for another tough session on Thursday after a poor night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 52 points or 0.65% lower this morning.
U.S. stocks sank under the weight of higher yields in the bond market on Wednesday.

The S&P 500 dipped 39.09 points, or 0.7%, to 5,266.95 and fell further from its record set last week. It trimmed its gain for May, which had been on track to be its best month since November, as four out of every five stocks in the index dropped.

The Dow Jones Industrial Average lost 411.32, or 1.1%, to 38,441.54, and the Nasdaq composite slipped 99.30, or 0.6%, to 16,920.58 after setting its latest all-time high.

 

[bigdog]

Stock market today: Asian shares shrug off latest Wall St rout as Chinese factory activity weakens.

Asian shares are higher as investors shrug off yet another decline on Wall Street. An official survey showed a weakening in Chinese factory activity, but benchmarks in Hong Kong and Shanghai were higher.

apnews.com

Most of Wall Street rises, but falls for some big tech stocks drag indexes lower​

By STAN CHOE
Updated 7:17 AM GMT+10, May 31, 2024

NEW YORK (AP) — Most U.S. stocks rose Thursday, but indexes nevertheless stumbled because of sharp drops for some influential technology giants. Salesforce dropped to its worst day in nearly 20 years.

The S&P 500 sank 31.47 points, or 0.6%, to 5,235.48, even though the majority of stocks within the index and across Wall Street were higher. The Dow Jones Industrial Average dropped 330.06, or 0.9%, to 38,111.48, and the Nasdaq composite lost 183.50, or 1.1%, to 16,737.08.

Salesforce, which helps businesses manage their customers, lost nearly a fifth of its value after reporting weaker revenue for the latest quarter than analysts expected. The cloud-based software company also gave forecasts for revenue in the current quarter and fiscal year that fell short of Wall Street’s. Shares tumbled 19.7%.

Kohl’s fell even more, 22.9%, after reporting a surprise loss for the latest quarter when analysts were expecting to see a profit. The retailer said sales fell from a year earlier as customers pulled back on clearance items. It cut its forecasts for sales this year because of the stumble.

And Nvidia finally ran out of momentum after blowing past analysts’ expectations in its latest profit report, which fed more fuel into Wall Street’s frenzy around artificial-intelligence technology. Nvidia sank 3.8% for its first drop since soaring more than 20% following its profit report last week. The chip company was an even heavier weight on the S&P 500 than Salesforce.

Helping to support the market were better-than-expected profit reports from a range of companies. Best Buy topped forecasts even though its revenue fell short last quarter, and its stock rose 13.4%. Foot Locker ran 15% higher after likewise reporting better-than-expected profit despite ringing up sales shy of analysts’ forecasts.

Stocks also broadly got a boost from easing Treasury yields in the bond market. That helped most stocks on Wall Street to climb, and the smaller stocks in the Russell 2000 index rallied 1%.

The drop in yields offered relief after they had climbed earlier this week on worries about tepid demand for Treasury bonds following several U.S. government auctions. Higher yields put downward pressure on all kinds of investments.

Yields fell Thursday after a couple reports showed the U.S. economy isn’t quite as strong as expected. The hope on Wall Street is that the economy can cool down, but not by too much, so that the Federal Reserve can hit a precise landing where it gets high inflation under control without causing a bad recession.

One report showed more U.S. workers applied for unemployment benefits last week than expected, though the number of layoffs still remains low compared with history. Another suggested the overall U.S. economy’s growth may not have been quite as strong as earlier thought.

A slowdown in the economy could give the Federal Reserve more confidence that inflation is sustainably heading down to its 2% target. That in turn could convince it to cut the federal funds rate, which has been sitting at the highest level in more than two decades.

The yield on the 10-year Treasury fell to 4.54% from 4.62% late Wednesday. The two-year yield, which more closely tracks expectations for Fed action, fell to 4.92% from 4.98%.

The more important data point will likely arrive Friday, when the U.S. government offers the latest monthly update on a gauge of inflation that the Federal Reserve prefers to use. That report “could dominate market sentiment until next Friday’s jobs report,” according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

Until then, the tail end of earnings reporting season could offer the main drivers for the market. Profits have largely been better than expected for the start of 2024.

Outside of Salesforce, other tech-related companies had warmer market receptions to their latest profit reports.

C3.ai jumped 19.4% after the software company topped expectations for both profit and revenue in the latest quarter. HP gained 17% after edging past forecasts for earnings.

Many retailers are also reporting, as they usually do to close each earnings season, and scrutiny is high because of worries about whether U.S. households can keep spending. Still-high inflation is hurting them, particularly those making lower incomes.

Dollar General swung from gains to losses after beating profit forecasts and edging past expectations for revenue in the latest quarter. The retailer, which serve many lower-income customers, said it saw strong traffic growth at its stores through the quarter. Dollar General also gave a forecast for profit over the full year that was in line with analysts’ expectations, but its forecast for this quarter’s fell short. Shares fell 8.1%.

Build-A-Bear Workshop tumbled 13.9%. The company, which lets customers build their own stuffed animals, reported worse drops in revenue and results for the latest quarter than analysts expected. The company said it had to contend with a “weaker spending environment” overall that dragged on its business.

In stock markets abroad, indexes rose modestly in much of Europe after struggling in Asia.

ASX 200 poised to rebound​

The Australian share market looks set to end the week on a positive note despite a poor session on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 50 points or 0.65% higher this morning.

Most U.S. stocks rose Thursday, but indexes nevertheless stumbled because of sharp drops for some influential technology giants. Salesforce dropped to its worst day in nearly 20 years.

The S&P 500 sank 31.47 points, or 0.6%, to 5,235.48, even though the majority of stocks within the index and across Wall Street were higher. The Dow Jones Industrial Average dropped 330.06, or 0.9%, to 38,111.48, and the Nasdaq composite lost 183.50, or 1.1%, to 16,737.08.

 

[bigdog]

Stock market today: Wall Street rallies to close out a bloom-filled May

An already verdant May for Wall Street finished with another push higher as stocks rallied after a report showed inflation is at least not worsening.

apnews.com

Wall Street rallies to close out a bloom-filled May​

By STAN CHOE
Updated 7:28 AM GMT+10, June 1, 2024

NEW YORK (AP) — An already verdant May for Wall Street finished with another push higher as stocks rallied Friday after a report showed inflation is at least not worsening.

The S&P 500 rose 0.8% to close its sixth winning month in the last seven. The main measure of the U.S. stock market’s health set an all-time high late in the month after clawing back all its losses from a rough April.

The Dow Jones Industrial Average jumped nearly 575 points, or 1.5%, while sagging prices for some big technology stocks held back the Nasdaq composite. It slipped by less than 0.1%.

Gap soared to one of the market’s biggest gains, 28.6%, after delivering stronger profit and revenue for the latest quarter than analysts expected. The parent company of Old Navy and Banana Republic reported growth across its brands, reversing earlier declines at most of them. The retailer also raised its forecasts for sales and profitability this year despite saying the outlook for the economy remains uncertain.

Stocks broadly got a boost from easing Treasury yields in the bond market after the latest reading on inflation came in roughly as expected. That left open the question of when Wall Street will get the lower interest rates that it craves.

The report showed a key measure of inflation remained at 2.7% last month, exactly as forecast. Some underlying trends also improved by a touch more than expected. That could bolster confidence at the Federal Reserve that inflation is sustainably heading toward its target of 2%, something it says it needs before it will cut its main interest rate.

The Fed has been keeping the federal funds rate at the highest level in more than 20 years in hopes of slowing the economy enough to stifle high inflation. But if it holds rates too high for too long, it could choke off the economy’s growth and cause a recession that throws workers out of their jobs and craters profits for companies.

“The pickle for the Fed is whether growth will slow faster than inflation,” said Brian Jacobsen, chief economist at Annex Wealth Management. “We’ve gone from great growth to slower growth pretty quickly. The road to lower inflation has been like a joyride so far, but the last mile will be more challenging.”

Friday’s report from the U.S. government showed that growth in spending by consumers weakened by more than economists expected. Growth in incomes for Americans also slowed last month.

Such numbers show businesses “need to prepare for an environment where consumers are not splurging like they were last year,” according to Jeffrey Roach, chief economist for LPL Financial.

After the report, the yield on the 10-year Treasury fell to 4.50% from 4.55% late Thursday. It had topped 4.60% earlier in the week amid worries about tepid demand following some auctions for Treasurys, a move that had hurt stocks.

The two-year Treasury yield, which more closely tracks expectations for Fed action, slipped to 4.87% from 4.93% late Thursday.

Virtually no one expects the Federal Reserve to cut interest rates at its next meeting in a week and a half. But traders are betting on a nearly 85% probability that the Fed will cut at least once by the end of the year, according to data from CME Group.

Stocks in industries that tend to benefit the most from easier interest rates helped lead the market Friday. Real-estate stocks in the S&P 500 jumped 1.9% as a group for one of the biggest gains among the 11 sectors that make up the index. Boston Properties rose 4.3%.

On the losing end of Wall Street were several tech stocks.

Dell tumbled 17.9% even though it matched analysts’ forecasts for profit in the latest quarter. Its stock had already soared 122% in 2024 ahead of the report, meaning expectations were very high, and analysts pointed to concerns about how much profit Dell is squeezing out of each $1 in revenue.

Nvidia fell for a second straight day, losing 0.8%, as its momentum finally slows after soaring more than 20% since its blowout profit report last week. The chip company was one of the heaviest weights on the S&P 500 Friday. But its soaring profits and ability to keep a frenzy going on Wall Street for the entire artificial-intelligence technology industry were also huge reasons for the index’s 4.8% gain for May.

Trump Media & Technology Group slumped 5.3% in its first trading following the conviction of Donald Trump on felony charges Thursday. The company, which runs the Truth Social platform, had warned earlier in filings with U.S. securities regulators that a conviction of Trump could hurt it.

MongoDB dropped 23.9% despite topping forecasts for profit and revenue. The database company for developers gave forecasts for profit in the current quarter and for this full year that fell short of analysts’ expectations.

All told, the S&P 500 rose 42.03 points to 5,277.51. The Dow leaped 574.84 points to 38,686.32, and the Nasdaq slipped 2.06 to 16,735.02.

In stock markets abroad, indexes were mixed across Asia and Europe.

 

[bigdog]

ASX 200 expected to rise again

The Australian share market looks set for another good session on Monday following a strong finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% higher.

On Friday in the United States, an already verdant May for Wall Street finished with another push higher as stocks rallied Friday after a report showed inflation is at least not worsening.

The S&P 500 rose 0.8% to close its sixth winning month in the last seven. The main measure of the U.S. stock market’s health set an all-time high late in the month after clawing back all its losses from a rough April.

The Dow Jones Industrial Average jumped nearly 575 points, or 1.5%, while sagging prices for some big technology stocks held back the Nasdaq composite. It slipped by less than 0.1%.

All told, the S&P 500 rose 42.03 points to 5,277.51. The Dow leaped 574.84 points to 38,686.32, and the Nasdaq slipped 2.06 to 16,735.02.

 

[bigdog]

Stock market today: Wall Street drifts to mixed finish after the latest signal of a slowing economy

NEW YORK (AP) — U.S. stocks drifted to a mixed finish Monday following the latest signal showing the U.S. economy is slowing.

ca.finance.yahoo.com

Stock market today: Wall Street drifts to mixed finish after the latest signal of a slowing economy​

Stan Choe
Tue, June 4, 2024 at 7:58 a.m. AEST

NEW YORK (AP) — U.S. stocks drifted to a mixed finish Monday following the latest signal showing the U.S. economy is slowing.

The S&P 500 edged up by 5.89 points, or 0.1%, to 5,283.40, even though the majority of stocks within the index fell. The Dow Jones Industrial Average dropped 115.29, or 0.3%, to 38,571.03, and the Nasdaq composite rose 93.65, or 0.6%, to 16,828.67.

Treasury yields also slid in the bond market after a report showed U.S. manufacturing shrank in May for the 18th time in 19 months, according to the Institute for Supply Management. Manufacturing has been hit particularly hard by high interest rates meant to get high inflation under control.

“Demand remains elusive as companies demonstrate an unwillingness to invest due to current monetary policy and other conditions,” said Timothy Fiore, chair of the Institute for Supply Management’s manufacturing business survey committee.

Stocks of companies whose profits are most closely tied to the strength of the economy dropped to the market’s worst losses. That included the oil-and-gas industry, as the price of crude tumbled on worries about weaker demand growth for fuel.

Halliburton dropped 5.3%, and Exxon Mobil fell 2.4%. They sank as the price of a barrel of U.S. oil dropped 3.5%. Brent crude, the international standard, lost a similar amount despite moves over the weekend by Saudi Arabia and other oil-producing countries meant to prop up its price.

On the winning side of Wall Street were some big technology stocks that keep flying regardless of what the economy is doing.

Nvidia climbed another 4.9% to bring its gain for this year to 132.2% after unveiling new products and services over the weekend. It’s been delivering blowout profits to keep at bay criticism that investors have become overzealous about the prospects for AI. Nvidia was by far the strongest force pushing the S&P 500 upward.

The jump was even bigger in another corner of Wall Street well accustomed to stomach-churning swings, both up and down.

GameStop soared 21% in a move reminiscent of its early 2021 rocket ride that shook Wall Street and brought the term “meme stock” into the parlance of our times. GameStop jumped after a Reddit account associated with a central character in the 2021 episode said it had built a stake of 5 million shares, along with options to buy more. The post from Sunday night said the position was worth $181.4 million.

The post made tidal waves online because it came from the same Reddit account that showed similar screenshots of big GameStop holdings in 2021 that helped the struggling video-game retailer’s stock price rocket higher, way beyond what many critics on Wall Street called rational.

“Meme stock” has become the way to describe companies whose prices move more on the enthusiasm of smaller-pocketed investors than on any fundamental change in their business prospects. Other meme stocks also rose Monday, including an 11.1% climb for AMC Entertainment.

In a more traditional move for the market, Stericycle jumped 14.6% after Waste Management said it would buy the medical-waste company for $5.8 billion in cash and assume $1.4 billion of its net debt. Waste Management fell 4.5%.

Hertz Global sank 5.3% after it said its chief operating officer is leaving and named a new chief financial officer.

In the bond market, the yield on the 10-year Treasury fell to 4.39% from 4.50% late Friday. The two-year yield, which more closely tracks expectations for action by the Federal Reserve, fell to 4.81% from 4.88%.

The hope among investors is for the U.S. economy to hit a precise bull’s eye where it slows enough to keep pressure off inflation but not so much that it causes a recession. That in turn could allow the Federal Reserve to cut its main interest rate.

The Fed has been keeping the federal funds rate at the highest level in two decades, which intentionally slows the economy and hurts investment prices in hopes of getting high inflation fully under control.

This upcoming week has several high-profile economic reports that could send yields on additional sharp swings.

On Tuesday, the U.S. government will show how many job openings employers were advertising at the end of April. And on Friday, it will give the latest monthly update on overall growth for jobs and workers’ wages.

In stock markets abroad, India’s Sensex jumped 3.4% after the country’s 6-week-long national election came to an end with most exit polls projecting that Prime Minister Narendra Modi will extend his decade in power with a third consecutive term.

Stocks in Mexico, meanwhile, slumped 6% after Claudia Sheinbaum claimed victory in that country’s presidential election.

Elsewhere in the world, stock indexes were higher across much of Europe and Asia, though Shanghai and London were exceptions.

ASX 200 expected to fall​

The Australian share market is expected to fall on Tuesday after a mixed start to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is poised to open the day 12 points or 0.15% lower.

U.S. stocks drifted to a mixed finish Monday following the latest signal showing the U.S. economy is slowing.

The S&P 500 edged up by 5.89 points, or 0.1%, to 5,283.40, even though the majority of stocks within the index fell. The Dow Jones Industrial Average dropped 115.29, or 0.3%, to 38,571.03, and the Nasdaq composite rose 93.65, or 0.6%, to 16,828.67.

 

[divs4ever]

Software Update "Glitch" Blamed For NYSE Market Break That Sparked Berkshire Wipe Out, Trading Halt Cascade​

Software Update "Glitch" Blamed For NYSE Market Break That Sparked Berkshire Wipe Out, Trading Halt Cascade | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

interesting question

there are supposed to be 'circuit breakers ' that Berkshire plummet should have tripped at least two , not much point triggering at a 100% drop ( instead of the 99.97% drop at the worst )

and according to reports although Berkshire was the big one some others dropped way more that 20% as well

 

[bigdog]

Stock market today: Asian stocks trade mixed after Wall Street logs modest gains

Asian shares are mixed as investors weighed data highlighting a slowing U.S. economy that offers both upsides and downsides for Wall Street.

apnews.com

Wall Street cleaves between winners and losers on report showing slowing econom​

By STAN CHOE
Updated 7:12 AM GMT+10, June 5, 2024

NEW YORK (AP) — U.S. stocks were split among winners and losers Tuesday after a report suggested the job market is cooling, the latest signal of a slowing economy that offers both upsides and downsides for Wall Street.

The S&P 500 ticked up by 0.2%, though more stocks within the index fell than rose. The Dow Jones Industrial Average rose 140 points, or 0.4%, and the Nasdaq composite added 0.2%.

The action was stronger in the bond market, where Treasury yields slid after Tuesday morning’s report showed U.S. employers were advertising fewer job openings at the end of April than economists expected.

Wall Street actually wants the job market and overall economy to slow. That could help get inflation under control and convince the Federal Reserve to cut interest rates, which would ease the pressure on financial markets. Traders upped their expectations for cuts to rates later this year following the report, according to data from CME Group.

The question is whether the slowdown for the economy overshoots and ends up in a painful recession. That would carry the downside of not only causing layoffs for workers across the country but also weakening profits for companies, which would drag stock prices lower.

Tuesday’s report said the number of U.S. job openings at the end of April dropped to the lowest level since 2021. The numbers suggest a return to “a normal job market” following years full of strange numbers caused by the COVID-19 pandemic, according to Bill Adams, chief economist for Comerica Bank.

But it also followed a report on Monday that showed U.S. manufacturing contracted in May for the 18th time in 19 months. Worries about a slowing economy have hit the price of crude oil in particular this week, raising the possibility of less growth in demand for fuel.

A barrel of U.S. crude has dropped close to 5% in price this week and is roughly back to where it was four months ago. That sent oil-and-gas stocks to some of the market’s worst losses for a second straight day. Halliburton dropped 2.5%.

Other companies whose profits tend to rise and fall with the cycle of the economy also fell to sharp losses, including steel makers and mining companies. Copper and gold miner Freeport-McMoRan lost 4.5%, and steelmaker Nucor fell 3.4%.

The smaller companies in the Russell 2000 index, which tend to thrive most when the U.S. economy is at its best, fell 1.2%.

Elsewhere on Wall Street, Bath & Body Works tumbled 12.8% for the worst loss in the S&P 500 despite topping expectations for revenue and profit in the latest quarter. Analysts called its forecast for results in the current quarter underwhelming.

GameStop also gave back some of its big gain from the day before, when euphoria broke out after a central character in the stock’s 2021 run returned to say he had built a stake in the video-game retailer. It dropped 5.4%.

On the winning side of Wall Street were dividend-paying stocks. They tend to benefit from lower interest rates because bonds paying lower yields can steer more income-seeking investors to real-estate investment trusts, utilities and other stocks that pay relatively high dividends.

Camden Property Trust, which offers multifamily housing around the country, rose 2.6% for one of the largest gains in the S&P 500. Mid-America Apartment Communities rose 2.1%.

Some Big Tech stocks whose fortunes seem to continue to rise no matter what the economy is doing also drove the market higher. Nvidia was the strongest force pushing the S&P 500 upward. It rose 1.2% as it keeps riding a furor on Wall Street around artificial-intelligence technology.

All told, the S&P 500 rose 7.94 points to 5,291.34. The Dow gained 140.26 to 38,711.29, and the Nasdaq added 28.38 to 16,857.05.

In the bond market, the yield on the 10-year Treasury slid to 4.33% from 4.39% late Monday and 4.50% late Friday. It had been above 4.60% recently.

The two-year yield, which more closely tracks expectations for the Fed, fell to 4.77% from 4.81%.

In stock markets abroad, India’s Sensex dropped 5.7% a day after jumping 3.4% following the country’s elections.

Indexes were mixed across the rest of Asia and lower across much of Europe.

ASX 200 expected to edge lower​

It looks set to be another subdued day for the Australian share market on Wednesday despite a reasonably positive session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 4 points lower.
U.S. stocks were split among winners and losers Tuesday after a report suggested the job market is cooling, the latest signal of a slowing economy that offers both upsides and downsides for Wall Street.

The S&P 500 ticked up by 0.2%, though more stocks within the index fell than rose. The Dow Jones Industrial Average rose 140 points, or 0.4%, and the Nasdaq composite added 0.2%.

All told, the S&P 500 rose 7.94 points to 5,291.34. The Dow gained 140.26 to 38,711.29, and the Nasdaq added 28.38 to 16,857.05.

 

[bigdog]

Stock market today: Asian stocks rise after Wall Street barrels to records

Asian stocks are higher after Wall Street barreled to new records as the frenzy around artificial-intelligence technology kept sending stocks higher.

apnews.com

Wall Street barrels to records as Nvidia tops $3 trillion in total value​

By STAN CHOE
Updated 7:02 AM GMT+10, June 6, 2024

NEW YORK (AP) — Wall Street barreled to records Wednesday as its frenzy around artificial-intelligence technology keeps sending stocks higher. The rally sent the total market value of Nvidia, which has become the poster child of the AI boom, above $3 trillion for the first time.

The S&P 500 climbed 1.2% to top its all-time high set two weeks ago. The Nasdaq composite jumped even more, 2%, and likewise set a record. The Dow Jones Industrial Average, which has less of an emphasis on tech, lagged the market with a gain of 96 points, or 0.2%.

Some fatter-than-expected profit reports from tech companies helped drive the market. Hewlett Packard Enterprise jumped 10.7% after saying strong sales related to artificial-intelligence systems helped it deliver better results than expected. It also raised its financial forecasts for the year.

Companies have so far been meeting Wall Street’s sky-high hopes for how much money AI technology will generate. That’s helped to catapult stocks almost regardless of what the broader economy and interest rates are doing.

Nvidia is leading the way because its chips are powering much of the rush into AI, and it rose another 5.2% to bring its gain for the year to more than 147%. As has become almost routine, Nvidia was again the day’s strongest force lifting the S&P 500.

The chip company also joined Microsoft and Apple as the only U.S. stocks to ever top $3 trillion in total value. Apple regained that milestone valuation after rising 0.8% Wednesday.

Other big tech stocks also drove the market higher, including a 1.9% rise for Microsoft, 3.8% gain for Meta Platforms and 6.2% rally for Broadcom. Cybersecurity company CrowdStrike climbed 12% after delivering better profit and revenue for the latest quarter than expected.

All told, the S&P 500 rose 62.69 points to 5,354.03. The Nasdaq jumped 330.86 to 17,187.90, and the Dow added 96.04 to 38,807.33.

The gains for tech stocks helped offset a 4.9% drop for Dollar Tree, which matched analysts’ expectations for profit but fell just shy for revenue. The retailer also said it’s considering selling or spinning off its Family Dollar business.

The broad retail industry has been highlighting challenges for lower-income U.S. households, which are trying to keep up with still-high inflation.

Treasury yields fell in the bond market following some mixed data on the economy. One report said real estate, health care and other businesses in the U.S. services sector returned to growth last month and beat economists’ forecasts. Perhaps more importantly for Wall Street, the report from the Institute for Supply Management also said prices rose at a slower pace in May than a month before.

Another report in the morning suggested hiring slowed last month by more than expected at U.S. employers outside the government.

Stocks had been shaky recently after reports suggested the U.S. economy’s growth is fading under the weight of high interest rates. Wall Street has actually been hoping for such a slowdown because it can drive down inflation and convince the Federal Reserve to deliver much-desired cuts to interest rates.

But it also raises the possibility of overshooting and sending the economy into a recession, which would ultimately hurt stock prices.

Treasury yields sank after the weaker-than-expected economic reports raised expectations for coming cuts to rates by the Federal Reserve. They eased more on Wednesday. The yield on the 10-year Treasury fell to 4.28% from 4.33% late Tuesday and from 4.60% a week ago.

The next big move for Treasury yields and Wall Street overall could come Friday, when the U.S. government releases its monthly jobs report. That report is much more comprehensive than Wednesday’s from ADP, and economists expect Friday’s data to show a slight pickup in overall hiring. The hope continues to be that the job market slows its growth but not by so much that it devolves into widespread layoffs.

The worst-case scenario for markets would likely be if data on the jobs market and the rest of the economy come in stronger than expected, according to JJ Kinahan, CEO of IG North America. That could push the Federal Reserve to consider hiking its main interest even further, which would put more strain on the economy and investment prices. The federal funds rate has been sitting at its highest level in more than two decades.

But Kinahan says he sees this scenario as less likely than others.

In stock markets abroad, indexes rose across much of Europe ahead of a decision on interest rates Thursday by the European Central Bank. Investors expect it to cut rates amid worries about the continent’s economy.

Stocks fell across much of Asia, with indexes dropping 0.9% in Tokyo and 0.8% in Shanghai, but they rose 1% in Seoul.


ASX 200 expected to climb again

The Australian share market looks set for another good session on Thursday after a strong night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.5% higher this morning.

Wall Street barreled to records Wednesday as its frenzy around artificial-intelligence technology keeps sending stocks higher. The rally sent the total market value of Nvidia, which has become the poster child of the AI boom, above $3 trillion for the first time.

The S&P 500 climbed 1.2% to top its all-time high set two weeks ago. The Nasdaq composite jumped even more, 2%, and likewise set a record. The Dow Jones Industrial Average, which has less of an emphasis on tech, lagged the market with a gain of 96 points, or 0.2%.

All told, the S&P 500 rose 62.69 points to 5,354.03. The Nasdaq jumped 330.86 to 17,187.90, and the Dow added 96.04 to 38,807.33.

 

[bigdog]

ASX is closed Monday June 10 for King's Birthday

Stock market today: Asian stocks are mixed ahead of key U.S. jobs data

Asian stocks are mixed after a steady Thursday on Wall Street as markets anticipate the key U.S. jobs data that will be revealed later in the day.

apnews.com

Wall Street’s momentum cools after its latest record-setting day​

By STAN CHOE
Updated 7:21 AM GMT+10, June 7, 2024

NEW YORK (AP) — U.S. stocks held steady Thursday as Wall Street’s momentum cooled following its latest record-setting day.

The S&P 500 barely budged a day after leaping to set an all-time high for the 25th time this year. It dipped by 1.07, or less than 0.1%, to 5,352.96. The Dow Jones Industrial Average added 78.84, points, or 0.2%, to 38,886.17, while the Nasdaq composite slipped 14.78, or 0.1%, to 17,173.12 after hitting its own record.

Big Lots tumbled 18.2% after reporting a larger loss for the latest quarter than expected. The retailer said it missed targets for sales because its customers are continuing to pull back on their spending, particularly for things that aren’t essentials.

Another retailer, Five Below, gave more discouraging comments about how its customers are doing. Its profit and revenue last quarter fell short of analysts’ expectations, and CEO Joel Anderson said struggles for the company’s core lower-income customers dragged on results, even as it saw strong growth from its higher-income customers. Five Below’s stock fell 10.6%.

Many retailers and other companies have been highlighting a split between their customers making lower and higher incomes. Inflation is particularly hurting those at the lower end, who are struggling to keep up with a cost of living that’s still rising, even if inflation is not as fast as before. That threatens to crack a linchpin that’s kept the U.S. economy out of a recession despite high interest rates: strong spending by U.S. households.

Another factor that’s helped U.S. consumer spending stay so strong has been a remarkably solid job market. A report on Thursday showed some potential softening there as well.

More U.S. workers applied for unemployment benefits last week than the week before, when economists were expecting to see a slight decline. The numbers are still low compared with history, but they could suggest some slowing in the job market.

Wall Street is actually hoping for just such a slowdown. That’s because a cooldown can drive inflation lower and convince the Federal Reserve to deliver the cuts to interest rates that traders desire so much. The danger is if the slowdown for the economy overshoots and turns into a recession, which would ultimately hurt stock prices.

In a potentially discouraging signal for markets, a separate report on Thursday said the productivity of U.S. workers wasn’t quite as strong in the first three months of the year as economists thought. That’s key because strong productivity gains could allow wages for U.S. workers to keep rising without adding as much upward pressure on inflation.

After the economic reports, Treasury yields held relatively steady. The yield on the 10-year Treasury remained at 4.28%, where it was late Wednesday.

On Wall Street, Lululemon Athletica climbed 4.8% after reporting better profit for the latest quarter than analysts expected, in large part because of strong growth in sales outside the Americas. J.M. Smucker rose 4.6% after the company behind Uncrustables and Jif peanut butter likewise topped profit expectations.

Robinhood Markets rose 6.4% after saying it agreed to buy Bitstamp, a cryptocurrency exchange. Robinhood said the deal, which still needs regulatory approvals, will bring in customers from around the world, including the European Union and Asia.

GameStop soared 47.5% in the latest whipsaw move for the video-game retailer’s stock. It’s been particularly volatile since a central character from its initial supernova run in 2021 recently returned to social media after a yearslong hiatus. The online hero, who goes by Roaring Kitty among other nicknames, is scheduled to return to YouTube for a live stream on Friday.

Nvidia, meanwhile, reversed an early gain and slipped 1.1% a day after becoming the third company to see its total value top $3 trillion. The chip company has been riding a tidal wave of enthusiasm for artificial-intelligence technology.

Trading could be more exciting on Friday, when the U.S. government offers the latest monthly update on the job market. Economists expect it to show slight accelerations in hiring and average hourly wage gains from the month before.

“Policymakers have reasons to start feeling cautiously optimistic on the labor market front as wage growth is returning to a sustainable range while labor turnover is softening,” according to Roger Aliaga-Diaz, Vanguard’s chief Americas economist.

As of now, virtually no one expects the Federal Reserve to make any move on interest rates at its meeting next week. But the hope is still for the Fed to cut its main interest rate at least once this year, down from its highest level in more than two decades.

The European Central Bank on Thursday became the latest in the world to cut its own interest rates. The bank’s president, Christine Lagarde, said inflation there had eased enough to begin lower rates but declined to say how the future path lower would look.

Stock indexes rose modestly in Europe following the widely expected decision. They were mixed in Asia, with indexes up 0.6% in Tokyo, down 0.5% in Shanghai and closed for trading because of a holiday in Seoul.

ASX 200 to rise again​

The Australian share market looks set to end the week on a positive note despite a relatively poor session on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 18 points or 0.2% higher this morning.

U.S. stocks held steady Thursday as Wall Street’s momentum cooled following its latest record-setting day.

The S&P 500 barely budged a day after leaping to set an all-time high for the 25th time this year. It dipped by 1.07, or less than 0.1%, to 5,352.96. The Dow Jones Industrial Average added 78.84, points, or 0.2%, to 38,886.17, while the Nasdaq composite slipped 14.78, or 0.1%, to 17,173.12 after hitting its own record.

 

[bigdog]

ASX is closed Monday June 10 for King's Birthday

Stock market today: Stocks slip and bond yields jump following a hotter-than-expected jobs report

Stocks slipped and Treasury yields rose sharply after the government released a jobs report whose headline numbers came in hotter than expected.

apnews.com

Stocks slip and bond yields jump following a hotter-than-expected jobs report​

By DAMIAN J. TROISE
Updated 7:03 AM GMT+10, June 8, 2024

NEW YORK (AP) — Stocks slipped and Treasury yields rose sharply Friday after the government released a jobs report whose headline numbers came in hotter than expected.

Overall, the report suggests markets may have to wait even longer for interest rate cuts from the Federal Reserve.

The S&P 500 fell 5.97 points, or 0.1%, to 5,346.99. The listless finish capped off an otherwise strong week for the benchmark index that included a record high. It rose 1.3% for the week.

The Nasdaq composite slipped 39.99 points, or 0.2%, to 38,798.99. It was a meek finish to a week where it gained 2.4%, while also reaching a record high.

The Dow Jones Industrial Average slipped 87.18 points, or 0.2%, to 38,798.99.

Smaller company stocks fared much worse. The Russell 2000 fell 1.1%.

U.S. employers added 272,000 jobs in May, up from April and greater than economists expected. The report also showed the unemployment rate rising for a second straight month. Overall, it signals continued strength in the jobs market, with some minor signs of weakening. The strong jobs market has supported consumer spending and the broader economy, but it has also been complicating the Federal Reserve’s path ahead for interest rates.

The yield on the 10-year Treasury jumped to 4.43% from 4.29% just before the jobs report was released. The two-year yield, which more closely tracks expectations for the Fed, jumped to 4.89% from 4.74% prior to the report’s release.

Wall Street is hoping for at least one cut to the Fed’s benchmark interest rate before the year ends. The central bank raised its interest rate to its highest level in more than two decades in an attempt to cool inflation to its target of 2%. However, inflation has been stubbornly hovering around 3% after dropping sharply over the last two years. A strong economy could keep fueling price increases.

“To those who are worried about inflation, especially the Federal Reserve, the report should raise concerns that wage pressure and sticky inflation is more likely to persist than be transitory,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

A cooldown for the economy can drive inflation lower and prompt the Fed to deliver the cuts to interest rates that traders desire so much. The danger is if the slowdown for the economy overshoots and turns into a recession, which would ultimately hurt stock prices.

Economic data from earlier in the week had hinted that the economy could be cooling. The latest reports show that manufacturing contracted in May, worker productivity isn’t as strong as economists thought and job openings are dropping. Those softening signals, along with big gains for chip companies focusing on artificial-intelligence technology, helped push the market to record highs throughout the week.

Updates next week on prices at the wholesale and consumer levels will be closely watched by both investors and the Fed to get a clearer view of inflation’s path.

Fed officials are expected to hold interest rates steady at their meeting next week. After the jobs report came out, investors took even more bets off the table that the Fed would cut rates at its July meeting, according to data from CME Group.

Wall Street has also been monitoring earnings from retailers, which have shown that customers have been pulling back on items that aren’t essentials. Consumer spending has been the main support for the economy, but stubborn inflation is hurting consumers, especially those with lower incomes.

GameStop, the troubled video game retailer at the center of the meme stock craze, slumped 39.4% after reporting another quarterly loss and saying it planned to sell up to 75 million more shares.

 

[bigdog]

Stock market today: Asian stocks are mixed ahead of this week's Fed meeting

Asian stocks are mixed ahead of a busy week with several top-tier reports on U.S. inflation due along with a policy meeting of the Federal Reserve.

apnews.com

Wall Street ticks to more records ahead of this week’s Fed meeting​

By STAN CHOE
Updated 7:47 AM GMT+10, June 11, 2024

NEW YORK (AP) — U.S. stocks ticked to more records Monday ahead of a week with several top-tier reports on inflation due, as well as the Federal Reserve’s latest meeting on interest rates.

The S&P 500 rose 13.80 points, or 0.3%, to 5,360.79 and topped its all-time high set last week. The Nasdaq composite also set a record after rising 59.40, or 0.3%, to 17,192.53, while the Dow Jones Industrial Average gained 69.05, or 0.2%, to 38,868.04.

Southwest Airlines flew to one of the market’s biggest gains, up 7%, after Elliott Investment Management said it’s taken a $1.9 billion ownership stake in the company and is pushing for new leadership to modernize the carrier’s software, strategy and operations.

Diamond Offshore Drilling jumped 10.9% after Noble agreed to buy its rival in a cash-and-stock deal valued at roughly $1.6 billion. Noble added 6.1% in a signal that traders expect the combination to be a winner. Other energy producers also climbed as the price of crude oil recovered some of its sharp losses since the spring.

Huntington Bancshares dropped 6.1% for one of the market’s largest losses after cutting its forecast for a key component of profit this year.

Apple fell 1.9% following a highly anticipated conference where it showed how its operating systems will use ChatGPT to offer services using artificial-intelligence technology. A furor around AI broadly on Wall Street has helped send stocks to records despite worries about high interest rates and the slowdown in the U.S. economy that they induce.

Data on the economy have come in mixed recently, and traders are hoping they will ultimately show a slowdown that stops short of a recession and is just right in magnitude. A cooldown would put less upward pressure on inflation, which could encourage the Federal Reserve to cut its main interest rate from its most punishing level in more than two decades.

But the data have been tough to parse, with Friday’s stronger-than-expected jobs report quickly on the heels of weaker-than-expected reports on U.S. manufacturing and other areas of the economy. Even within U.S. consumer spending, the heart of the economy, is a sharp divide between lower-income households struggling to keep up with still-high inflation and higher-income households doing much better.

“Bottom line, the data remains mixed, leaving all of the major macro outcomes still on the table for this year,” according to Morgan Stanley strategists led by Michael Wilson.

In the meantime, companies benefiting from the AI boom are continuing to report big growth almost regardless of what the economy and interest rates are doing.

Nvidia, for example, is worth roughly $3 trillion and rose 0.7% Monday after reversing an early-morning loss. It was the first day of trading for the company since a 10-for-one stock split made its share price more affordable to investors, after it ballooned to more than $1,000 amid the AI frenzy.

Treasury yields were mixed in the bond market ahead of reports later in the week that will show whether inflation improved last month at both the consumer and wholesale levels.

On Wednesday, the Federal Reserve will announce its latest decision on interest rates. Virtually no one expects it to move its main interest rate then. But policy makers will be publishing their latest forecasts for where they see interest rates and the economy heading in the future.

The last time Fed officials released such projections, in March, they indicated the typical member foresaw roughly three cuts to interest rates in 2024. That projection will almost certainly fall this time around. Traders on Wall Street are largely betting on just one or two cuts to rates in 2024, according to data from CME Group.

In the bond market, the yield on the 10-year Treasury rose to 4.46% from 4.43% late Friday. The two-year yield, which more closely tracks expectations for the Fed, slipped to 4.88% from 4.89%.

In stock markets abroad, France’s CAC 40 index sank 1.3% after French President Emmanuel Macron dissolved the National Assembly following surprising results in elections for the European Parliament. Far-right parties made gains, and the value of the euro dropped. Other indexes also fell in Europe, though not by as much as France’s.

Markets in Asia were mixed. Tokyo’s Nikkei 225 index rose 0.9% after data showed Japan’s economy shrank by less in the year’s first three months than earlier thought. South Korea’s Kospi fell 0.8%, while markets were closed in Shanghai, Hong Kong and Australia for holidays.

ASX 200 expected to sink​

The Australian share market is expected to sink on Tuesday despite a positive start to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is poised to open the day 33 points or 4.5% lower.

U.S. stocks ticked to more records Monday ahead of a week with several top-tier reports on inflation due, as well as the Federal Reserve’s latest meeting on interest rates.

The S&P 500 rose 13.80 points, or 0.3%, to 5,360.79 and topped its all-time high set last week. The Nasdaq composite also set a record after rising 59.40, or 0.3%, to 17,192.53, while the Dow Jones Industrial Average gained 69.05, or 0.2%, to 38,868.04.

 

[bigdog]

Stock market today: Wall Street drifts to a mixed close but still notches some records

Stocks drifted to a mixed close overall on Wall Street, but the S&P 500 and Nasdaq composite still managed to notch more record highs.

apnews.com

Wall Street drifts to a mixed close but still notches some records​

By DAMIAN J. TROISE
Updated 7:46 AM GMT+10, June 12, 2024

NEW YORK (AP) — Stocks drifted to a mixed close overall on Wall Street Tuesday, but the S&P 500 and Nasdaq composite still managed to notch more record highs.

The subdued trading came ahead of a key inflation report and the Federal Reserve’s latest interest rate policy decision on Wednesday.

The S&P 500 rose 14.53 points, or 0.3%, to 5,375.32, driven largely by gains in tech stocks, even though more stocks fell than rose within the index. The tech-heavy Nasdaq composite rose 151.02 points, or 0.9%, to 17,343.55. Both indexes set record highs for the second straight day.

Apple did the heavy lifting for the broader market. It surged 7.3% after highlighting its push into artificial intelligence technology.

The Dow Jones Industrial Average lagged the market. It slipped 120.62 points, or 0.3%, to 38,747.42.

The key events for the market this week come on Wednesday, when the U.S. releases its latest update on inflation at the consumer level and the Federal Reserve announces its latest update on interest rates. The U.S. will also release its latest update on prices at the wholesale level on Thursday.

Wall Street expects the government’s consumer price index to remain unchanged at 3.4% in May. Inflation as measured by CPI is down sharply from its peak at 9.1% in 2022, but it has seemingly stalled around 3%. That has complicated the Fed’s goal of taming inflation back to its target rate of 2%.

The Fed has held its main interest rate at its highest level in more than two decades and Wall Street is currently hoping for one or two cuts to that rate this year. Virtually no one expects the Fed to move its main interest rate at its current meeting, which started Tuesday. Policymakers will be publishing their latest forecasts on Wednesday for where they see interest rates and the economy heading.

When Fed officials released their last projections in March, they indicated the typical member foresaw roughly three cuts to interest rates in 2024. That projection will almost certainly fall this time around.

Data on the economy have come in mixed recently, and traders are hoping for a slowdown that stops short of a recession and is just right in magnitude. A cooldown would put less upward pressure on inflation, which could encourage the Fed to cut rates. Lower interest rates could fuel more growth for the broader stock market. Major indexes have been rallying to records, though, despite worries about sticky inflation and high interest rates.

The economy has remained resilient with support from a strong jobs market and consumer spending. Consumers are becoming increasingly stressed, especially those with lower incomes, and retailers have been warning investors about the potential impact to earnings and revenue. The U.S. jobs market has been showing some signs of cooling, which could ease inflation but put more stress on consumers.

“With strong labor market readings, inflation data will be even more important in the months to come,” said Kristy Akullian, head of iShares Investment Strategy Americas.

Elsewhere on Tuesday, General Motors rose 1.3% after the automaker announced that its board approved a $6 billion stock buyback. Calavo Growers jumped 8.2% after the avocado grower’s latest quarterly report beat analysts’ forecasts.

Banks were among the biggest weights on the market. Fifth Third Bancorp fell 1% after cutting its forecast for revenue growth. JPMorgan fell 2.6% and Citigroup fell 3.7%.

Affirm Holdings climbed 11% on news that the buy now, pay later company will be integrated into Apple Pay.

Paramount Global, the media company that owns the Paramount movie studio, CBS as well as several cable networks, dropped 7.8% following reports that talks to merge the company with Skydance Media had fallen apart.

Treasury yields fell in the bond market. The yield on the 10-year Treasury slipped to 4.40% from 4.47% late Monday.

Stocks in Europe fell and stocks in Asia were mixed.

ASX 200 expected to fall again​

It looks set to be another red day for the Australian share market on Wednesday despite a reasonably positive session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.5% lower.

Stocks drifted to a mixed close overall on Wall Street Tuesday, but the S&P 500 and Nasdaq composite still managed to notch more record highs.

The subdued trading came ahead of a key inflation report and the Federal Reserve’s latest interest rate policy decision on Wednesday.

The S&P 500 rose 14.53 points, or 0.3%, to 5,375.32, driven largely by gains in tech stocks, even though more stocks fell than rose within the index. The tech-heavy Nasdaq composite rose 151.02 points, or 0.9%, to 17,343.55. Both indexes set record highs for the second straight day.

The Dow Jones Industrial Average lagged the market. It slipped 120.62 points, or 0.3%, to 38,747.42.

 

[bigdog]

Stock market today: Asia shares rise amid Bank of Japan focus after the Fed stands pat

Asian shares are mostly higher as investors turned their attention to what the Bank of Japan might decide on monetary policy later this week.

apnews.com

Wall Street climbs on hopes for coming cuts to interest rates​

By STAN CHOE
Updated 7:14 AM GMT+10, June 13, 2024

NEW YORK (AP) — U.S. stocks climbed Wednesday following a surprisingly encouraging update on inflation and a reassurance that the Federal Reserve still sees a cut to interest rates as likely this year.

The S&P 500 added 0.9% to its all-time high set a day earlier. The Nasdaq composite also built on its own record and jumped 1.5%, while the Dow Jones Industrial Average lagged the market with a dip of 35 points, or 0.1%.

The action was even stronger in the bond market, where Treasury yields dropped after the inflation report showed U.S. consumers paid prices that were 3.3% higher for food, insurance and everything else last month from a year earlier. Economists had been expecting to see the inflation rate stuck at 3.4%.

For Wall Street, a slowdown in inflation not only helps U.S. households struggling to keep up with fast-rising prices, it also opens the door for the Federal Reserve to cut its main interest rate. Such a move would ease pressure on the economy and give a boost to investment prices.

Everything from bitcoin to gold to copper rallied after the inflation data raised expectations for coming cuts to interest rates. A measure of nervousness among investors in U.S. stocks also eased.

For its part, the Federal Reserve kept its main interest rate steady on Wednesday following its latest policy meeting.

Policymakers welcomed the latest update on inflation, but “we’ll need to see more good data to bolster our confidence,” Fed Chair Jerome Powell said. He repeated the Fed’s mantra that it needs an accumulation of data showing inflation is sustainably heading toward its 2% target before it lowers the federal funds rate, which is at the highest level in more than two decades.

“We’ll have to see where the data lights the way,” he said, reiterating the Fed’s commitment to moving based on where incoming reports steer it.

The Fed is in a tight spot with a lot on the line. Cutting interest rates too soon or by too much could allow inflation to reaccelerate, while waiting too long would put unnecessary pain on the economy.

“It’s a consequential decision for the economy, and you want to get it right,” Powell said.

The Fed indicated Wednesday that most of its policymakers are forecasting one or two cuts to interest rates at some point this year. They also raised their forecasts for the number of cuts in 2025.

Fed officials trimmed their forecast for the number of cuts in 2024 down from a median of three after progress seemed to stall early this year on bringing inflation lower. Such a fall-off was widely expected, and traders are still largely betting on the first of potentially two cuts to rates in 2024 coming in September, according to data from CME Group.

That had areas of the stock market that tend to benefit most from lower interest rates doing the best.

Smaller companies that need to borrow to grow and can therefore feel the pinch of higher interest rates more than larger rivals led the market. The smaller stocks in the Russell 2000 index jumped 1.6%.

Lower interest rates could also mean easier mortgage rates and inject energy into the housing market. Homebuilder D.R. Horton climbed 3%. Builders FirstSource, which sells vinyl windows, custom millwork and other building materials, jumped 5.3%.

Oracle helped lead Wall Street higher with a leap of 13.3% even though it reported weaker profit for the latest quarter than analysts expected. Financial analysts pointed to strong bookings, including contracts related to artificial-intelligence training.

A furor around AI has helped send stocks to records despite worries about high interest rates and the slowdown in the economy that they induce. Nvidia again was the strongest force pushing the S&P 500 higher, with a gain of 3.5%. The chip company has become the poster child of the AI rush, and its total market value has topped $3 trillion.

Apple was nearly as strong a force pushing up on the S&P 500 as Nvidia after rising 2.9%. Its stock has been jumping the last two days after getting a cool initial reception to the announcement of several AI-related offerings coming to its operating systems.

All told, the S&P 500 rose 45.71 points to 5,421.03. The Nasdaq gained 264.89 to 17,608.44, and the Dow dipped 35.21 to 38,712.21.

In the bond market, the yield on the 10-year Treasury fell to 4.32% from 4.40% late Tuesday and from 4.60% a couple weeks ago. The two-year Treasury yield, which more closely tracks expectations for the Fed, slumped to 4.75% from 4.83% late Tuesday. Yields had been down even more earlier in the day.

In stock markets abroad, European indexes rallied following the release of the encouraging U.S. inflation data. In Asia, where markets closed before the data came out, indexes were mixed. Japan’s Nikkei 225 index lost 0.7% as investors wait for the Bank of Japan’s latest announcement on interest rates due Friday.

ASX 200 expected to jump​

The Australian share market looks set to jump on Thursday following a strong night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 52 points or 0.7% higher this morning.

U.S. stocks climbed Wednesday following a surprisingly encouraging update on inflation and a reassurance that the Federal Reserve still sees a cut to interest rates as likely this year.

The S&P 500 added 0.9% to its all-time high set a day earlier. The Nasdaq composite also built on its own record and jumped 1.5%, while the Dow Jones Industrial Average lagged the market with a dip of 35 points, or 0.1%.

All told, the S&P 500 rose 45.71 points to 5,421.03. The Nasdaq gained 264.89 to 17,608.44, and the Dow dipped 35.21 to 38,712.21.