On Tuesday, July 9, both the S&P 500 and the tech-heavy Nasdaq edged to new highs. The market's upward movement preceded the release of significant US pricing data, with Federal Reserve Chairman Jerome Powell indicating "modest" progress in reining in inflation.
For the sixth straight day, the Nasdaq reached a record high, closing the day up 0.1 per cent at 18,429.29. The S&P 500 increased by 0.1 per cent to 5,576.98, marking its fifth consecutive record high. In the meantime, the Dow Jones concluded at 39,291.97, down 0.1 per cent.
Federal Reserve data
The preferred inflation gauge of the Fed increased by 2.6 per cent for the period from June 2023 to May 2024, compared to 7.1 per cent in June 2022. Even though the unemployment rate is still low at 4.1 per cent, it has increased over the past three months.
Federal Reserve Commentary
Jerome Powell, the chair of the Federal Reserve, stated in prepared remarks that inflation "remains above" the 2 percent soft-landing target. Though he acknowledged that it has improved recently, he continued, saying that "more good data would strengthen" the argument in favor of interest rate reductions.
Powell emphasized that he wasn't "giving any indications as to when any future actions will take place."
US Federal Reserve Chairman Jerome Powell |
Wall Street anticipates that the most recent government report, which is expected on Thursday, may reveal that consumer prices decreased to a lower level than in June, from 3.3 per cent in May. On Friday, a report on wholesale inflation is anticipated, which measures inflation before costs are passed on to consumers.
Top stocks on wall street
The stock of Elon Musk's electric vehicle manufacturer, Tesla, increased 3.7 per cent in anticipation of the business's August "Robotaxis" presentation.
Nvidia's stock surged 2.5 percent, offsetting losses in other chip stocks, making it a darling on Wall Street. Chipmaker Intel also saw a 1.8 per cent increase in price.
Following news that it delivered 44 aircraft in June, Boeing saw a 1.4 per cent decline. The total number of deliveries of commercial aircraft for the current quarter fell to 92, a nearly one-third decrease. Compared to the first quarter, Boeing delivered 83 commercial aircraft from Jan 2024 to March 2024.
