Market Review 26th June 2024
Simplify the craziness
DAILY REVIEW
N
3 min read
INDEX:
S&P, Nasdaq & VIX Market Summary
Current & Upcoming Fed News/Economic Data
US Bonds and Treasury Yields
Futures, Crude Oil, Gold, & Other Commodities
Crypto: Bitcoin, Ethereum, and Alt Coins
Notable Earnings
1. S&P, Nasdaq & VIX Market Summary
S&P 500 Performance:
The S&P 500 eked out a small gain of 8.60 points, or 0.16%, closing at 5,477.90.
This gain comes as investors evaluate their holdings following a booming first half of the year, driven largely by artificial intelligence (AI) plays.
Despite this positive movement, three out of every four stocks in the index fell, with sectors such as real estate and materials being the hardest hit.
Dow Jones Industrial Average:
The Dow Jones Industrial Average added 15.64 points, or 0.04%, to end at 39,127.80.
Unlike the Nasdaq and S&P 500, the Dow does not include Nvidia, contributing to its underperformance.
Nasdaq Composite:
The tech-heavy Nasdaq Composite added 87.50 points, or 0.49%, to finish at 17,805.16.
The Nasdaq is set for an 18.6% first-half gain due to a significant run in Nvidia.
Nvidia closed up around 0.3% after a 7% climb the previous day, contributing significantly to the Nasdaq's performance.
Influence of Major Tech Stocks:
Amazon shares jumped 3.9%, reaching an all-time high and topping $2 trillion in market value for the first time.
Other major tech companies such as Apple, Alphabet, and Microsoft also saw gains, further bolstering the Nasdaq's performance.
Market Divergence:
Nvidia's dominance in the market has sparked concerns that most other stocks are failing to participate in this year's rally.
Broader concerns remain about the economy's growth amid high interest rates and potential market bubbles in AI stocks.
VIX Index:
The VIX, a measure of market volatility, indicated increased market calmness, aligning with Nvidia's recovery.
2. Current & Upcoming Fed News/Economic Data
Federal Reserve Insights:
Fed's Michelle Bowman suggested the potential for another rate hike if inflation remains uncontrolled.
The Federal Reserve's current stance remains hawkish, focusing on controlling inflation with high interest rates.
Economic Data Highlights:
Consumer confidence reports showed slight easing but highlighted a stable job market.
Investors are eyeing Friday’s personal consumption expenditures (PCE) release for further inflation insights.
Interest Rate Speculations:
Market anticipations of a rate cut in September are prevalent, though historically, stocks have dropped post rate cuts.
The balance between inflation control and avoiding recession remains delicate for the Fed.
3. US Bonds and Treasury Yields
10-Year Treasury Yield:
The yield settled at 4.237%, slightly down from 4.248% the previous day.
Yields have been declining since topping 4.70% in late April, easing stock market pressure.
Bond Market Dynamics:
The bond market has been relatively stable, reflecting investor confidence in moderated inflation.
Treasury yields remain a critical indicator for future economic conditions and Fed policies.
4. Futures, Crude Oil, Gold, & Other Commodities
Crude Oil:
West Texas Intermediate (WTI) crude fell by 0.95% to $80.76 a barrel.
Brent crude decreased by 2.1% to $84.97 a barrel, reflecting global supply concerns and economic conditions.
Gold:
Gold prices dipped by 0.42%, settling at $2,323.60 per ounce.
The precious metal remains a safe haven amidst economic uncertainties.
Other Commodities:
The commodities market showed mixed performances, influenced by geopolitical tensions and market demand fluctuations.
5. Notable Earnings
Nvidia:
Nvidia's earnings rebound significantly impacted market dynamics.
The company’s performance remains a barometer for the AI sector and broader tech industry.
Amazon:
Shares of Amazon jumped 3.9%, reaching an all-time high and topping $2 trillion in market value for the first time on Wednesday.
Amazon's rise was driven by surging spending on artificial intelligence and cloud computing.
Carnival Corporation:
Carnival reported unexpected quarterly profits and raised its outlook, buoyed by strong demand for cruises.
Competitors like Royal Caribbean and Norwegian Cruise Line also saw stock gains.
FedEx:
FedEx issued better-than-expected fiscal fourth-quarter results, causing its stock to pop 15.5%.
This post-earnings rally marked the stock’s biggest one-day gain since 1986.
Pool Corp.:
Pool Corp. saw an 8% decline after cutting financial forecasts due to reduced consumer spending on new pools.
6. Crypto: Bitcoin, Ethereum, and Other Coins
Bitcoin:
Bitcoin regained ground, rising to $62,000 after a 7% drop the previous day.
The market remains volatile with significant swings influenced by macroeconomic factors and regulatory developments.
Ethereum:
Ethereum’s potential ETF approval by the SEC is nearing, with VanEck filing form 8-A.
This move signals possible imminent trading, following a pattern similar to Bitcoin ETF launches.
Other Cryptocurrencies:
Market dynamics show varied performances among altcoins, with regulatory news and technological developments driving changes.
References
