Chip stocks, led by Nvidia, push S&P 500 to new high

From Nasdaq: 2024-06-18 18:24:27

Stock indexes posted modest gains on Tuesday, with the S&P 500 hitting a new all-time high. Chip stocks surged, led by a more than 3% jump in Nvidia. US economic news was mixed, with weak retail sales but strong manufacturing data.US retail sales rose 0.1% m/m in May, lower than the expected 0.3%. Manufacturing production rose 0.9% m/m, higher than the expected 0.3%.Fed officials’ comments were generally hawkish, signaling patience before cutting rates. Markets are pricing in low chances of a rate cut in July but higher chances in September. Q1 earnings results were positive, with about 81% of S&P 500 companies beating estimates. Overseas markets closed higher on Tuesday.European government bond yields fell on Tuesday. The German 10-year bund yield dropped 1.7 bp to 2.396%. ECB Vice President Guindos mentioned next forecasts are due in September. Markets are pricing in low odds of an ECB rate cut in July but higher chances in September.Stocks like Nvidia, Teradyne, and Constellation Energy surged on Tuesday, while Ball Corp and homebuilders like Lennar dropped. Moderna and Tesla ended in the red. Boeing fell after reports of mishandling faulty parts, while Phillip Morris stopped online sales due to a subpoena related to flavored nicotine pouches. Earnings reports scheduled for 6/20/2024 include Accenture and Kroger.



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