HoonSmart.com>> The Dow Jones closed down 120 points, and investors traded cautiously ahead of the CPI report. In contrast, the Standard & Poor's 500 and Nasdaq closed at a new high, supported by the highest level ever for Apple shares, “crude oil.” Prices rose on the other hand. European stock markets closed negative.
The Dow Jones Industrial Average (DJIA) closed on June 11, 2024 at 38,747.42 points, down 120.62 points or -0.31%. Despite investors trading cautiously ahead of this week's consumer price report and interest rate decision from the US Federal Reserve (Fed), the index continued The S&P 500 and Nasdaq rose and closed at new highs after the unprecedented rise in Apple shares.
The S&P 500 index closed at 5,375.32 points, up 14.53 points, or 0.27%.
The Nasdaq index closed at 17,343.55 points, rising 151.02 points, or +0.88%.
Analysts say investors will take profits from AI companies like Nvidia and turn to new AI stocks, like Apple, which just launched a new feature that could lead to upgrades to the iPhone. Apple shares broke records this trading session. This is the first time since December last year. They rose nearly 7.3%, while Nvidia shares fell 0.7%.
In the market in general, investors are evaluating the opportunity to lower interest rates. Stay tuned for the Consumer Price Index (CPI) data report that will be released on Wednesday. This is because it is an important factor in the Federal Reserve's view at the monetary policy meeting that began yesterday and concludes on Wednesday.
Although the Federal Reserve's monetary policy meeting is expected to keep interest rates at their highest levels in two decades, investors are still monitoring the release of economic forecasts. And Fed officials' interest rate policy forecasts (Dot Plot) after the meeting to assess when to cut interest rates. Between September or November
CME Group's latest FedWatch tool indicates that investors approve of the Fed's 66% interest rate cut in November.
Marko Kolanovic, equity strategist at JP Morgan, warned that the chances of an interest rate cut are slim after the stronger-than-expected May jobs report. The trend of policy easing has been tapering off this year and now the Fed is expected to cut interest rates for the first time only in November.
Bill Mears, head of capital markets research at US Wealth Management Bank, said that before the Fed's decision, investors were closely following the CPI data.
Analysts expect the headline CPI, which includes the food and energy categories, to rise 3.4% in May. On an annual basis and up 0.1% on a monthly basis, the core CPI, excluding food and energy, is expected to rise by 3.5% on an annual basis and 0.3% on a monthly basis.
European markets closed negative Bank stocks fell across the continent as investors worried about political uncertainty in France. Meanwhile, prepare for the Federal Reserve's monetary policy meeting. During Wednesday (June 12)
The STOXX 600 closed down 0.9%, its largest one-day drop in two weeks. Meanwhile, the Italian and Spanish indices, dedicated to banks, fell by 1.9% and 1.6%, respectively, and selling pressure led by banks fell by 2.2%, continuing their decline since Monday.
The French stock market continued its decline since yesterday after President Emmanuel Macron announced the dissolution of Parliament to hold new elections. This opened the way for the extremist white National Rally party to assume responsibility for running the country.
The yield on French 10-year bonds reached 3.2437%, hitting its highest level in seven months in early trading.
Basic Resources Group, including Europe's largest miner, had its shares fall about 2% as prices of most metals came under pressure from a stronger dollar. And concerns about demand from China, the main consumer.
On the data front, the British labor market showed further signs of slowing in April. From the high unemployment rate
Investors are focused on the policy decision the Federal Reserve will make on Wednesday. This will help the market evaluate the timing and magnitude of interest rate cuts.
The STOXX 600 index closed at 517.29 points, down 4.87 points, or -0.93%.
The London Stock Exchange FTSE 100 index closed at 8,147.81 points, down 80.67 points, or -0.98%.
The French Stock Exchange CAC-40 index closed at 7,789.21 points, down 104.77 points, or -1.33%.
The German DAX stock market index closed at 18,369.94 points, down 124.95 points, or -0.68%.
West Texas Intermediate crude futures for July delivery rose 16 cents, or 0.21%, to close at $77.90 a barrel. The price of Brent North Sea crude for August delivery increased by 28 cents, or 0.36%, to close at $81.92 per barrel.
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