Nasdaq hits record highs while S&P 500 and Dow Jones slip due to poor consumer sentiment

From IG Group: 2024-06-17 01:01:17

The Nasdaq hits fifth consecutive record closing highs in a tech-driven frenzy on Friday. However, S&P 500 and Dow Jones closed slightly lower due to soft Michigan Consumer sentiment reading. For the week, Nasdaq gained 3.47%, S&P 500 gained 1.58%, while Dow Jones lost 0.54%.

The University of Michigan Consumer sentiment index fell to 65.6, lower than expected 72, the lowest since November. Current conditions and expectations subindices fell, with five-year inflation expectations increasing to 3.1%. This decline may test the resilience of the American consumer and the US economy.

Fed Members Mester and Goolsbee welcomed the cooler inflation data but want to see more before cutting rates. This week, key events will be Retail Sales and S&P Global Flash PMIs. The rates market is pricing in a 68% chance of a 25 bps Fed rate cut in September.

S&P 500 secured its seventh weekly gain, eyeing resistance at 5500. Initial support is at 5370/40 with more critical support at 5225. A break below 5225 could indicate a deeper pullback towards 5000/4950 support levels.



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