Market Recap (12th June, 2024)
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The US stock market produced mixed results on Wednesday as widely expected, following the Federal Reserve’s decision to leave interest rates unchanged.
The S&P 500 and Nasdaq Composite indexes climbed 0.8% and 1.5% respectively, etching new record highs. However, the Dow Jones Industrial Average dipped slightly, shedding 35 points.
The Fed’s economic projections surprised markets with a more conservative outlook compared to earlier forecasts. The committee now predicts a single, modest rate cut of 25 basis points this year, lower than the two cuts currently priced in by the market.
This shift towards a potentially slower pace of rate reductions came despite a softer-than-expected inflation report released earlier in the day. Both headline and core inflation figures came in lower than anticipated.
Technology stocks spearheaded Wednesday’s gains, buoyed by a significant rise in Treasury yields. This rise benefitted sectors sensitive to credit conditions, such as technology, while energy, consumer staples, and utilities companies lagged behind.
Among tech giants, Apple, Nvidia, and Microsoft all experienced notable gains, surging 2.8%, 3.5%, and 1.9% respectively.
On the corporate front, Oracle Corporation’s stock price skyrocketed a remarkable 13.3% to a new all-time high, following the announcement of lucrative new cloud computing deals with Google and OpenAI.
