Dow Closes Firmly Positive But Nasdaq, S&P 500 Give Back Ground
20 Junho 2024 - 5:30PM
IH Market News
Following a modest move to the upside early in the session, the
major U.S. stock indexes moved in starkly opposite directions
during trading on Thursday. While the Nasdaq and the S&P 500
pulled back off their early highs and into negative territory, the
narrower Dow saw continued strength.
The Dow ended the day up 299.90 points or 0.8 percent at a
nearly one-month closing high of 39,134.76, but the S&P 500
fell 13.86 points or 0.3 percent to 5,473.17 and the Nasdaq slumped
140.64 points or 0.8 percent to 17,721.59.
While the early strength on Wall Street came amid a continued
advanced by shares of Nvidia (NASDAQ:NVDA), the subsequent downturn
by the Nasdaq and the S&P 500 was also led by a significant
pullback by the AI darling and marker leader.
Shares of Nvidia tumbled by 3.5 percent after surging by as much
as 3.8 percent earlier in the trading day.
Nvidia shot up by 3.5 percent during trading on Tuesday,
surpassing Microsoft (NASDAQ:MSFT) as the world’s most valuable
public company.
The downturn by the Nasdaq and the S&P may also have
reflected profit taking after the indexes reached new record
intraday highs, with the S&P 500 turning lower after climbing
above 5,500 for the first time.
Meanwhile, the advance by the Dow came amid a 4.3 percent spike
by shares of Salesforce (NYSE:CRM) along with strong gains by
Chevron (NYSE:CVX) and IBM Corp. (NYSE:IBM).
Traders were also digesting the latest batch of U.S. economic
data, including a Labor Department report showing a modest pullback
by first-time claims for U.S. unemployment benefits in the week
ended June 15th.
The Labor Department said initial jobless claims dipped to
238,000, a decrease of 5,000 from the previous week’s revised level
of 243,000.
Economists had expected jobless claims to fall to 235,000 from
the 242,000 originally reported for the previous week.
The upwardly revised number for the previous week marked the
highest level since claims reached 248,000 in the week ended August
12, 2003.
“Initial claims fell less than we anticipated in the week ended
June 15 and point toward a moderation in growth in nonfarm payrolls
in June,” said Ryan Sweet, Chief U.S. Economist at Oxford
Economics.
He added, “The risk of labor demand being too weak to prevent
the unemployment rate from rising could give some support in
cutting interest rates as an imbalance in the labor market is
unlikely to be a significant factor in future inflation.”
Meanwhile, a separate report released by the Commerce Department
unexpectedly showed a steep drop in new residential construction in
the U.S. in the month of May.
The Commerce Department said housing starts plunged by 5.5
percent to an annual rate of 1.277 million in May after surging by
4.1 percent to a revised rate of 1.352 million in April.
Economists had expected housing starts to climb by 0.7 percent
to an annual rate of 1.370 million from the 1.360 million
originally reported for the previous month.
The report also said building permits slumped by 3.8 percent to
an annual rate of 1.386 million in May after tumbling by 3.0
percent to a rate of 1.440 million in April.
Building permits, an indicator of future housing demand, were
expected to increase by 0.7 percent to an annual rate of 1.450
million.
Sector News
Semiconductor stocks moved sharply lower amid the downturn by
Nvidia, dragging the Philadelphia Semiconductor Index down by 2.7
percent.
Notable weakness also emerged among computer hardware stocks, as
reflected by the 1.1 percent loss posted by the NYSE Arca Computer
Hardware Index.
On the other hand, gold stocks showed a substantial move to the
upside on the day, driving the NYSE Arca Gold Bugs Index up by 2.5
percent. The rally by gold stocks came amid a significant increase
by the price of the precious metal.
An increase by the price of crude oil also contributed to
considerable strength among oil producer stocks, resulting in a 1.6
percent gain by the NYSE Arca Oil Index.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region turned in a mixed performance during trading on Thursday.
Japan’s Nikkei 225 Index crept up by 0.2 percent, while China’s
Shanghai Composite Index fell by 0.4 percent.
Meanwhile, the major European markets all moved notably higher
on the day. While the French CAC 40 Index surged by 1.3 percent,
the German DAX Index jumped by 1.0 percent and the U.K.’s FTSE 100
Index advanced by 0.8 percent.
In the bond market, treasuries moved back to the downside
following the rebound seen on Tuesday. Subsequently, the yield on
the benchmark ten-year note, which moves opposite of its price,
climbed 3.7 basis points to 4.254 percent.
Looking Ahead
Trading on Friday may be impacted by reaction to the latest U.S.
economic data, including separate reports on existing home sales
and leading economic indicators.
SOURCE: RTTNEWS
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