On Tuesday, the Nasdaq surged due to a rebound in AI stocks, particularly Nvidia, following recent selloffs. While the Dow experienced a dip from its one-month high, investors are eagerly anticipating key inflation data to gain insights into the Federal Reserve’s monetary policy direction. Consumer confidence data has remained steady, in line with expectations.
Nvidia, an AI chip firm, saw a 3.3% increase, recovering from losses in the previous sessions. Other AI-related stocks like Taiwan Semiconductor Manufacturing, Broadcom, and Qualcomm also saw gains. The semiconductor sector overall rebounded by 0.8%, helping the S&P 500 technology sector recover from losses.
Despite the tech-driven S&P 500 and Nasdaq hitting record highs, the Dow continues to lag significantly. Concerns have arisen regarding the sustainability of equity strength. The U.S. consumer confidence index for June declined slightly to 100.4, aligning with forecasts.
Market experts are closely monitoring economic indicators, with a 61% probability of a 25-basis-point interest rate cut in September. Investors foresee approximately two rate cuts by the year-end. The highlight of the week will be the release of the PCE price index on Friday, the Fed’s preferred inflation metric.
At present, the Dow Jones Industrial Average fell by 0.38%, the S&P 500 rose by 0.16%, and the Nasdaq Composite increased by 0.66%. Spirit AeroSystems experienced a 5.3% drop after Boeing proposed an acquisition deal valuing the company at around $35 per share. Conversely, Carnival Corp’s shares rose by 3.7% following an upward revision of its profit forecast.
In summary, as the Nasdaq gains momentum with AI stocks rebounding, the market awaits crucial economic data for further direction. The tug-of-war between growth and value stocks continues amidst ongoing uncertainties, shaping investors’ sentiment and market movements.
