Stock market today: S&P 500, Nasdaq hit fresh record highs as Wall Street gets bullish
06/18/2024 00:53
Wall Street wondered if the bull rally that has roared through 2024 has more room to run.
US stocks held near record-highs Monday to kick off a holiday-shortened trading week as Wall Street wondered if the bull rally that has roared through 2024 has more room to run.
The tech-heavy Nasdaq Composite (^IXIC) rose 1% after the index notched a "perfect" week in Friday's session with its fifth straight record close. The S&P 500 (^GSPC) gained 0.8%, while the Dow Jones Industrial Average (^DJI) erased earlier losses to rise 0.4%.
Stocks have continued ripping higher as a tech-fueled rally has led Wall Street to revise its year-ahead targets for the S&P 500. Evercore ISI boosted its year-end price target to 6,000, while Goldman Sachs upped its target to 5,600. The benchmark index topped the 5,400 level for the first time last week.
With last week's double dose of inflation reports and the Federal Reserve meeting behind markets, fewer catalysts are set to greet investors this week. The highlight will be Wednesday's retail sales report, which provides a glimpse into the health of the US consumer.
Fed policymakers will likely pick up their chatter after last week's decision. Minneapolis Fed president Neel Kashkari on Sunday hinted that a December rate cut could be the Fed's only move this year. Investors are pricing in around a two-thirds chance that the central bank begins its cuts by September, according to the CME FedWatch tool. The New York Fed's John Williams and the Philadelphia Fed's Patrick Harker are slated for appearances on Monday.
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Nasdaq gains 1% to hit new all-time high, S&P 500 also at record
The tech-heavy Nasdaq Composite (^IXIC) gained 1% in afternoon trading while the S&P 500 (^GSPC) gained 0.8% as both of the major averages notched new intraday highs.
The Dow Jones Industrial Average (^DJI) rose 0.3%.
The sectors leading the gains included Technology, Consumer Discretionary, and Industrials.
GameStop tanks 15% during shareholder meeting
GameStop stock (GME) fell as much as 15% during the video game retailer's annual shareholder meeting on Monday.
Chairman and CEO Ryan Cohen spoke briefly at the top of the highly anticipated gathering, emphasizing the company's focus on achieving profitability.
“With respect to retail operations we plan to continue reducing costs and focusing on profitability,” said Cohen.
“We are focused on building shareholder value over the long term. We are not here to make promises, or hype things up. We’re here to work,” he added.
GamesStop shares have been volatile over the past month amid the reemergence of retail trader Keith Gill, credited with sparking the meme frenzy of 2021.
GameStop has capitalized on recent rallies, raising over $3 billion in proceeds from stock offerings over the past month.
“Having a strong balance sheet especially in times of economic uncertainty is a strategic advantage,” Cohen said on Monday.
The shareholder meeting was postponed last week due to a high volume of people trying to listen in on the gathering.
S&P 500, Nasdaq extend session gains to hit new highs
The major averages were all higher on Monday with the Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) touching fresh intraday highs.
The Dow Jones Industrial Average (^DJI) erased earlier losses to rise 0.3%.
Technology and Consumer Discretionary stocks outperformed as shares of Apple (APPL), Tesla (TSLA) and chipmaker Broadcom (AVGO) led the gains.
Oil prices rise as market expects summer demand to keep supply tight
Oil future rose roughly 1% on Monday, building on last week's gains following a sell-off earlier this month.
On Monday, West Texas Intermediate (CL=F) was trading just over $79.50 per barrel, adding to a gain of roughly 4% last week.
Brent (BZ=F), the international benchmark price, hovered above $83.50 per barrel on Monday.
Futures pulled back earlier this month after oil alliance OPEC+ announced it would extend its production cuts into 2025 but some of its voluntary reductions would begin to phase out starting in October.
Prices ticked higher last week on expectations that summer demand for transportation and cooling would keep supply tight.
Goldman Sachs analysts recently forecast Brent crude prices will rise to $86 per barrel later this summer.
Major averages turn green as Nasdaq, S&P 500 hover near records
The major averages all turned green mid-morning.
The Nasdaq Composite (^IXIC) which had been positive most of the session, gained almost 0.2% while the S&P 500 (^GSPC) rose 0.1%. The Nasdaq and S&P 500 closed at record highs last week.
The Dow Jones Industrial Average (^DJI) erased earlier losses to rise above the flatline.
Nvidia touches new record while rest of the market is little changed
Nvidia (NVDA) hit new record highs on Monday, as the chip giant continued to lead the Nasdaq Composite (^IXIC) higher.
The stock gained almost 1% as the rest of the market was muted. Nvidia is up more than 170% year-to-date.
Nvidia has by far outperformed the rest of the ‘Magnificent Seven’ stocks and the Nasdaq 100 (^NDX) components.
Stocks little changed to kick off shortened trading week
Stocks were little changed on Monday to kick off a holiday-shortened trading week.
The Nasdaq Composite (^IXIC) gained almost 0.1% after the tech-heavy index notched five straight sessions of record closes last week.
The S&P 500 (^GSPC) fell 0.1% after also hitting record highs last week, while the Dow Jones Industrial Average (^DJI) lost about 0.4%.
The stock market has been inching higher despite investors' scaled-back expectations on rate cuts in 2024. The market now anticipates the Federal Reserve will cut rates just one time this year following the central bank's latest policy meeting last week.
Technology-related stocks continued to gain on Monday. Year to-date, the S&P 500's Information Technology Sector ETF (XLK) is up more than 18%, compared to the broader benchmark's 13% gain.
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