Today, the US stock market displayed a mixed performance. Concerns regarding the economic outlook coupled with potential risks in the market have pointed to an overvaluation, leading to weakened upward momentum. The S&P 500 index fluctuated throughout the day but ultimately closed near its opening level. In contrast, technology stocks surged, with the Nasdaq reaching an all-time high thanks to NVIDIA hitting a record price. Additionally, Micron Technology announced a positive earnings forecast, which contributed to market optimism.
Overview
Today's session in the US stock market was characterized by mixed results, as investors remained cautious about the economic outlook despite some positive corporate earnings. The S&P 500 index closed relatively unchanged, while tech-heavy indexes continued to show strength.
Major News:
- The S&P 500 index experienced volatility, ultimately closing close to the previous day's level.
- The Nasdaq composite climbed to new heights, driven by NVIDIA's record-breaking stock performance.
- Micron Technology's optimistic earnings forecast boosted investor sentiment in technology stocks.
- The spread between the 30-year and 5-year Treasury yields has widened to its highest level since 2021, signaling market expectations of potential Federal Reserve interest rate cuts.
- New home sales reported a dramatic decline of 13.7%, while rising mortgage rates dampened housing market activity.
- Fed Chair Jerome Powell maintained a cautious stance in congressional testimony, emphasizing the need for more data before making interest rate decisions.
- Concerns arose regarding the valuation of the S&P 500, as it trades at 22 times the expected earnings, 35% higher than the long-term average.
Upcoming Economic Indicators
| Time (EST) | Economic Indicator |
|---|---|
| 8:30 PM | US May Wholesale Inventories |
| 8:30 PM | US GDP Growth Rate (Q1) |
| 8:30 PM | US Core PCE Price Index |
| 8:30 PM | US Chicago Fed National Activity Index |
| 8:30 PM | US May Durable Goods Orders |
| 8:30 PM | US Weekly Jobless Claims |
| 8:30 PM | US May Retail Sales |
| 8:30 PM | US EIA Natural Gas Storage |
| 12:00 AM | US Oil Production Index |
| 8:45 PM | Speech by Fed Chair Powell |
| 8:00 PM | Speech by Fed Vice Chair Barr |
| 8:15 PM | Speech by Fed Governor Waller |
| NasDaq | S&P 500 |
| Dow Jones | Won/Dollar |
In the overall sentiment of the stock market today, mixed results prevailed as economic indicators raised concerns over potential overvaluation. Investors are watching closely as treasury yield spreads indicate a shift in market expectations, and further economic data will be critical going forward. With the upcoming economic indicators, the market will likely react sharply depending on the results, particularly in relation to inflation and consumer spending trends.
