S&P 500 and Nasdaq 100 reach record highs fueled by AI hardware stocks.

From Nasdaq: 2024-06-17 18:13:47

US stock indexes closed higher Monday, with the S&P 500 and Nasdaq 100 hitting record highs. Positive momentum driven by AI stocks and French political developments supported gains. Citigroup raised its outlook for US equities while cutting its European stock outlook. M&A activity, including acquisitions of Autodesk and Aaron’s, boosted sentiment.
China’s weak economic reports signal broader economic struggles, with new home prices dropping the most in 9.5 years. China’s industrial production figures also missed expectations, highlighting global growth concerns. However, the US Jun Empire manufacturing survey index showed improvement, with Federal Reserve officials indicating a potential interest rate cut.
Market expectations for a rate cut in upcoming FOMC meetings are low, predicting a 59% chance in September. Positive Q1 earnings results support stock prices, with earnings exceeding estimates for majority of S&P 500 companies. Overseas markets saw mixed results, with European bond yields moving higher. ECB officials hinted at a potential rate cut in September.
US stock movers included Autodesk, Tesla, Corning, and Aaron’s. AI hardware stocks rallied, boosting related companies like Super Micro Computer and Qualcomm. Micron Technology, Ollie’s Bargain Outlet, and Best Buy also saw gains. Conversely, utility stocks like Vistra Corp and copper mining companies faced challenges. Earnings reports for June 18 include America’s Car-Mart, KB Home, and Patterson Cos.



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