The Dow Jones New York stock index fell on Thursday (June 13), but the S&P 500 and Nasdaq index ended at new highs for a fourth straight day, supported by continued gains in technology stocks.
- The Dow Jones Industrial Average closed down 65.11 points, or -0.17%, at 38,647.10.
- The S&P500 index rose 12.71 points, or +0.23%, to close at 5,433.74.
- The Nasdaq index rose 59.12 points, or +0.34%, to end at 17,667.56.
U.S. reveals weekly jobless claims rise And the producer price index (PPI) was lower than expected in May. Investors are still hopeful that the Federal Reserve (Fed) will cut interest rates.
The US PPI, which measures inflation in producer spending, rose 2.2% year-on-year in May. That was below analysts' expectations after rising 2.3% in April, which excludes food and energy, and rose 2.3% in May year-on-year. That was below analysts' expectations of 2.4% after rising 2.5% in April.
The number of first-time applicants for unemployment benefits rose by 13,000 last week to 242,000. It was the highest level in 10 months or since August. 2023 and more than analysts' estimates of 225,000.
The yield on the 10-year US government bond fell below 4.3% after the US released a lower-than-expected PPI index.
CME Group's FedWatch tool indicates that investors are adding more weight to expectations that the Fed will cut interest rates twice this year, with the first cut in September. Declined again in December. After the release of US Consumer Price Index (CPI) and Producer Price Index (PPI), May was lower than expected.
Ryan Derrick, chief market strategist at the Carson Group in Nebraska, commented: “Although the Fed signaled at its last meeting that it would cut interest rates only once this year, the Fed also relies on economic and inflation data to decide interest rates. A slowdown in inflation numbers will soon change the Fed's view. We expect that to change.
The S&P 500 technology stock index rose 1.4% and the semiconductor index rose 1.5%, with both indexes closing at record highs.
Shares of telecommunications chipmaker Broadcom rose 3.5% after the company raised its forecast for earnings from semiconductors used in artificial intelligence (AI) technology.
Industrial stocks sensitive to the economy fell 0.6%, and the Russell 2000 index, a group of small-cap stocks, fell 0.9%.
By InfoQuest News Agency (14 June 2024)
Tags: Dow Jones, Dow Jones, Stock Market, New York Stock Exchange