S&P 500 hits record high due to tech stocks and optimism, potential rate cuts

From Yahoo Finance: 2024-06-17 16:37:12

Stocks hit all-time highs driven by large tech companies, with S&P 500 reaching 30th record this year. Resilient economy, earnings optimism, and potential rate cuts fuel rally, with S&P 500 forecasted to reach 6,000 by year-end. As Fed hints at rate cuts, Treasuries fall, but tech stocks soar while European stocks rebound.

Citi and other firms raise S&P 500 forecasts, citing strength in technology stocks and growing earnings expectations. Hedge funds reduce leverage as market highs spur caution. Record highs don’t necessarily signal market strength, as breadth weakens. Traders wait on Fed’s retail sales data and comments from Fed speakers.

Correlation between stock prices and bond yields inverts, signaling change in inflation regime. Negative correlation may indicate shift towards higher inflation conditions. US FTC sues Adobe for consumer protection violations. Tesla approved to test driver-assistance system in Shanghai. Boeing CEO faces Senate scrutiny amid ongoing crisis.

Cybercriminals demand payments from companies hit in Snowflake breach. GameStop CEO aims for profitability while avoiding hype. Key events this week include US retail sales, Eurozone CPI, UK BOE rate decision. In markets, S&P 500, Nasdaq 100, Dow Jones rise. Dollar, euro, pound see modest changes. Bitcoin, crude oil prices increase.



Read more at Yahoo Finance: S&P 500 Hits 30th Record of 2024 as Megacaps Rally: Markets Wrap