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The tech-heavy Nasdaq might close this week with average gains of five consecutive days, while the Dow fell to its lowest weekly gains since May.
Two major U.S. stock market features fell on Friday, with the Nasdaq heading to score its fifth consecutive day of gains. On Thursday, the S&P and Nasdq made their first successive days of trading, yet in today’s session, the S&P declined, falling by more than 0.12%. The Dow Jones industrial average fell by 0.21%, and the tech-heavy composite Nasdaq increased by 0.04%. The Dow Jones Industrial Average closed modestly lower.
Following a cooler-than-expected CPI report and the Fed’s revised dot plot, the University of Michigan released its preliminary consumer sentiment index, which fell to 65.6 in June from 69.1 in May. Its one-year inflation explanation has declined to 2.9% this month compared to the previous 3.1%. As for the five-year outlook, the University of Michigan has projected that inflation will be estimated at 2.* by the end of 2029.
With these two indicators, inflation is likely cooling, which could mean high expectations of interest rates later this year, more likely in September. However, based on the Fed’s latest notes, they will implement only one interest rate cut this year, with a small possibility of cutting it by the end of December 2024. This, in turn, has helped to grow market sentiment and hopes that a disinflationary trend could lead to lower interest rates by the end of the year.
Moving to the individual stock market and today’s top news, starting with Gamestop. The Compass stock price was up by 1% after Keith Gill, also known as Roaring Kitty, nearly doubled his stake in the company to 9 million shares from 5 million. The stock price incline has followed its announcement that it would host its annual shareholder meeting on June 17, after tech issues disrupted the meeting on Thursday. On the other hand, The top plane company Boeing Co. stock prices fell by 2% this Friday. The decline followed the Federal Aviation Authority’s investigation of accusations of using fake titanium in planes.
Adobe Systems string AI demand has generated for the company high gains and revenues in 2024, which boosted the company stock prices by 14%. The highest increase is in 2022. As for Tesla share prices, the company shares fell by 2% this Friday after the shareholders voted in favor of the company CEO, Elon Musk, for his controversial $56 billion pay package and the company’s reincorporation in Texas.
Elsewhere, the European stock suffered average weekly losses. European stocks extended their sell-off due to political uncertainties in France, with the pan-European STOXX 600 falling 2.4% for the week, marking its largest single-week drop of 2024. The STOXX 600 index lost 0.97%, and MSCI’s global stock gauge shed 0.36%. The stock market has affected euro prices in Europe and caused them to fall to their largest weekly drop against the dollar due to France’s political uncertainties. While the dollar advanced by 0.01%.
