Fundamental Analysis

Wall Street Retreats With Data, Fed Comments In focus

Wall Street’s main indexes edged lower on Monday as investors awaited fresh economic data and comments from Federal Reserve officials throughout the week for more clarity on monetary policy.

Keeping a lid on losses were megacaps Apple (AAPL.O), and Microsoft (MSFT.O), with gains of 0.3% and 0.9%, respectively. AI chip leader Nvidia (NVDA.O), advanced 1% to hit a fresh record high.

Other chip stocks also rose, sending the Philadelphia SE Semiconductor index (.SOX), to an all-time high. Broadcom (AVGO.O), and U.S.-listed shares of Taiwan Semiconductor Manufacturing Co were up around 3% each, while Micron Technology (MU.O), jumped 2% after price-target raises by brokerages.

Autodesk (ADSK.O), jumped 4.5% after a report that activist investor Starboard Value had bought a roughly $500 million stake in the software maker.

Technology (.SPLRCT), was the biggest gainer among the 11 S&P 500 sector indexes.

Technology (.SPLRCT), was the biggest gainer among the 11 S&P 500 sector indexes.

The blue-chip Dow (.DJI), was the only major index to post weekly declines on Friday, while the Nasdaq (.IXIC), notched its fifth consecutive record closing high. The S&P 500 hit multiple all-time peaks in the previous week.

“There really isn’t an appetite to be a real seller right now because there is a perception that momentum is going to continue, and stocks are going to continue winning,” said Daniela Hathorn, senior market analyst at Capital.com.

“The fact that the rally has been driven mostly by a select few stocks, that would mean that the pullback could be even deeper.”

Goldman Sachs still raised its 2024 year-end target for the S&P 500 Index (.SPX), to 5,600 from 5,200 earlier, representing an about

Markets are also keeping a close eye on upcoming comments from the New York Fed’s John Williams, Philadelphia Fed’s Patrick Harker and Fed Board Governor Lisa Cook.

Data showed the New York Fed’s Empire State Current Business Conditions index slipped less than expected, while the index of prices paid softened slightly.

On the economic roster for the rest of the week are May retail sales data on Tuesday, with industrial production, housing starts and S&P flash PMI data among other key releases due later in the week.

Recent hawkish projections from the Federal Reserve have somewhat contrasted several data releases pointing to growing weakness in the economy. The central bank dialed back their projections for three rate cuts in 2024 to just one on Wednesday.

However, markets still expect about two 25-basis-point cuts this year, according to LSEG data. The CME FedWatch tool shows easing is still seen beginning at the September meeting.

At 9:47 a.m. ET, the Dow Jones Industrial Average (.DJI), was down 91.66 points, or 0.24%, at 38,497.50, the S&P 500 (.SPX), was down 5.63 points, or 0.10%, at 5,425.97, and the Nasdaq Composite (.IXIC), was down 17.42 points, or 0.10%, at 17,671.46.

A shorter trading week is on deck as markets will be closed on Wednesday.

Declining issues outnumbered advancers for a 1.73-to-1 ratio on the NYSE and for a 1.55-to-1 ratio on the Nasdaq.

Declining issues outnumbered advancers for a 1.73-to-1 ratio on the NYSE and for a 1.55-to-1 ratio on the Nasdaq.

Advertisement

Click To Join Our Community Telegram Group

Arvinth Akash

Recent Posts

US Stocks Set For More Losses As Rate Hopes Fade: Markets Wrap

Global stocks extended declines on Monday, hit by diminishing wagers on Federal Reserve interest-rate cuts…

13 hours ago

Weekly Summary And Review 10th January 2025

Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of January…

4 days ago

Bonds Under Pressure, Stocks Fall, With Eyes On UK Gilts, US Policy

Government bonds remained under pressure on Thursday and the dollar held steady near its highest…

5 days ago

GBPCHF Technical Analysis And Short Term Forecast

Hi Traders! GBPCHF technical analysis and short term forecast is here. We do our analysis…

5 days ago

EURNZD Short Term Forecast Update And Follow Up

Hi Traders! EURNZD short term forecast update and follow up is here. On October 15th…

6 days ago

US Dollar Index Technical Analysis And Short Term Forecast

Hi Traders! US Dollar Index technical analysis and short-term forecast is here. We do our…

6 days ago