S&P 500 Hits Record High Amid Economic Uncertainties and Rate Cut Expectations
As Wall Street navigates through a series of weaker-than-expected economic reports, traders have pushed the S&P 500 to an all-time high, betting on the potential for Federal Reserve rate cuts later this year. In a trading session shortened ahead of the US holiday, the S&P 500 reached a record 5,535, marking its 33rd record high in 2024.
Amidst these market movements, Treasury yields fell and the dollar weakened. The latest Fed minutes revealed that while officials are waiting for more evidence of cooling inflation, they remain divided over how long to maintain high interest rates. The upcoming jobs report this Friday is highly anticipated for further insights into the labor market. Recent data indicates that US services activity has seen its fastest contraction in four years, with private payrolls growing moderately and continuing jobless claims rising for the ninth consecutive week.
Investors are also closely monitoring political developments, as President Joe Biden faces increasing pressure regarding his re-election campaign, while former President Donald Trump’s lead over Biden has widened following recent debates.
Corporate Highlights:
- Novo Nordisk (NVO) faces concerns as its top-selling drugs, Ozempic and Wegovy, are linked to a rare form of vision loss, according to specialists at Massachusetts Eye and Ear.
- Paramount Global’s (PARA) shares surged following the revival of a merger deal with Skydance Media.
- Nvidia’s (NVDA) CEO, Jensen Huang, sold shares worth nearly $169 million, capitalizing on robust demand for AI chips.
- Amazon’s (AMZN) Jeff Bezos plans to sell 25 million shares valued at around $5 billion as the company’s stock reaches new heights.
- Lyft (LYFT) announces a 20% fare hike for its e-bike rentals in New York City due to unexpected operating costs.
- Ford (F) reports a drop in F-Series sales amid a cautious rollout of the redesigned model.
- Southwest Airlines (LUV) adopts a shareholder rights plan in response to demands from Elliott Investment Management for changes in leadership.
- LL Flooring Holdings (LL) considers Chapter 11 bankruptcy, as reported by sources familiar with the company’s plans.
