US STOCKS-S&P 500, Nasdaq Hit Record Highs as Markets Digest Data
On Wednesday, the S&P 500 and Nasdaq indexes reached new record intraday highs, driven by technology stocks as the market absorbed economic data that could support an anticipated Federal Reserve policy easing cycle. The S&P 500 was on track for another closing record, surpassing its previous intraday peak, while the Nasdaq achieved a new intraday high.
Technology stocks led the way among the 11 S&P 500 sectors, with communications and industrials sectors also seeing gains. However, consumer staples stocks experienced the most significant losses.
The private payrolls data for May showed a slow down, indicating a mild easing in labor market tightness that could prompt the Fed to begin reducing rates this year. Another report from Tuesday revealed a decline in job openings to the lowest level in over three years.
Traders are now predicting a nearly 69% chance of a rate cut in September, up from around 50% the previous week. The Dow Jones Industrial Average rose by 0.26%, the S&P 500 climbed by 0.98%, and the Nasdaq Composite gained 1.67%.
Chip stocks surged by 4.2%, with Nvidia and Taiwan Semiconductor Manufacturing hitting record highs at 4.5% and 6.5% respectively.
Hewlett Packard Enterprise saw a 12% increase after projecting third-quarter revenue surpassing Street expectations, driven by strong demand for its AI servers.
On the flip side, Dollar Tree fell by 5.5% following a disappointing quarterly profit forecast and is exploring strategic options, including a potential sale or spinoff of Family Dollar.
Intel received a 2.4% boost after Apollo Global Management agreed to purchase a 49% equity interest for $11 billion in a joint venture related to the chipmaker’s Ireland manufacturing unit.
CrowdStrike Holdings also experienced a significant jump of 10% after predicting second-quarter revenue above estimates.
Overall, advancing issues exceeded decliners on both the NYSE and Nasdaq by a significant margin. The S&P 500 showcased new highs and lows, highlighting the ongoing market developments.
By Chibuike Oguh
