Wall Street stocks closed mixed on Thursday, Reuters news agency reported (11 July) The Dow Jones rose 32.39 points, while the Nasdaq index and the S&P 500 index closed in negative territory as investors sold shares of tech giants such as Nvidia, Apple and Tesla and bought large stocks after the US released June inflation data. That's creating less-than-expected expectations that the U.S. Federal Reserve will cut interest rates this September.
The Dow Jones industrial average closed down 32.39 points, or 0.08%, at 39,753.75. .
The S&P 500 Index and the Nasdaq Index closed in negative territory after recording 6 and 7 consecutive days of record highs, respectively. The NASDAQ index closed with its biggest percentage loss in a single day. From April 30.
The S&P 500 and Nasdaq fell after the U.S. Labor Department reported that the U.S. Consumer Price Index (CPI) fell more than expected in June. And has the lowest annual rate of increase in 1 year, giving hope that the central bank will cut interest rates in September. The general consumer price index (headline CPI) rose 3.0% year-over-year in June. That was lower than a Reuters poll that had expected a 3.1% increase after a 3.3% gain in May.
Core CPI (Core CPI), which excludes food and energy products, rose 3.3% year-on-year in June. The 3.4% was below analysts' expectations after core inflation rose 3.4% in May in June. This is the smallest increase since April 2021.
CME's Fedwatch tool indicates that investors expect the Federal Reserve to be more than 90% likely. The fiscal policy meeting in September will cut interest rates by 0.25%. This is up from 74% last Wednesday.
However, despite signs of slowing inflation, shares of Wall Street's most valuable companies ended in negative territory, with Microsoft and Amazon closing up more than 2%, Meta Platforms about 4% and Tesla down 8.4%. Later, Bloomberg News reported that the company may delay the launch of its autonomous taxis, or robotaxis, by two months to October. From the original schedule in August.
Apple shares fell 2.3% on selling pressure after closing at a record high on Wednesday after BofA Global Markets raised its price target on Apple, anticipating strong iPhone sales on the back of new AI features.
Meanwhile, stocks of tech giants closed in negative territory. Small-cap stocks closed on positive territory, with the Russell 2000 index of small-cap stocks rising 3.6% to close at its highest level since March. After investors predict a 2022 central bank rate cut that will help small firms revive their business operations.
Sam Stovall, chief investment strategist at CFRA Research, said: “I think investors now believe that the Federal Reserve. “Ready to reduce interest rates,” he said.
As for individual stocks, Delta Air Lines shares fell 4% after the company revealed it forecast lower-than-expected profit for the current quarter. Meanwhile, shares of other major airlines also fell. The airline group's index, calculated on the S&P 500 index, fell 2.7%.
Meanwhile, Conagra Brands shares fell 1.5% after the packaged food maker forecast lower-than-expected annual revenue and profit.
Investors are also keeping an eye on the Producer Price Index (PPI) data report scheduled for release this Friday. Including the second quarter results of major US banks to find signals about the direction of inflation.
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