Stock indexes hit record highs on US economic strength and easing inflation, boosted by chip stocks

From Nasdaq: 2024-06-28 13:12:24

Stock indexes are up today, with the S&P 500 and Nasdaq 100 hitting new highs amid easing US price pressures. May core PCE deflator eased to +2.6% y/y, the slowest in 3 years. Chip stocks are boosting the market, supported by window dressing as Q2 ends. The chance of Fed rate cuts is increasing.

US personal spending rose +0.2% m/m in May, while personal income climbed +0.5% m/m. May core PCE price index eased to +2.6% y/y. Jun MNI Chicago PMI jumped to 47.4. University of Michigan Jun consumer sentiment index revised to 68.2, well above expectations. Odds of Fed rate cut rising.

Q1 earnings exceeding expectations, with a +7.1% y/y gain expected. 81% of S&P 500 companies beating earnings estimates. European markets mixed today. Interest rates rose today on US economic news. T-notes fell back as bullish factors for Fed policy emerged. ECB 1-year and 3-year inflation expectations eased.

Synchrony Financial (SYF) leads S&P 500 gainers. Chip stocks like Marvell Technology (MRVL) and AMD are up. Healthcare stocks, including Humana (HUM) and UnitedHealth Group (UNH), are climbing. Tesla (TSLA) up on electric vehicle sales data. Infinera (INFN) up on Nokia deal. Nike (NKE) down, as well as Estee Lauder (EL), Travelers Cos (TRV), and Xerox Holdings (XRX). Rocket Pharmaceuticals (RCKT) down after FDA rejection. Kura Sushi USA (KRUS) forecasts lower sales. Earnings reports today from DZS Inc (DZSI), Inhibrx Biosciences Inc (INBX), NET Lease Office Properties (NLOP).



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