FX168 Financial News (North America) - On Wednesday, June 26, #US Stock Market# The US stock market closed near its historical high point last week. Nvidia experienced roller coaster-like volatility, mainly affecting the overall market direction. Amazon's valuation reached USD 2 trillion, and this rebound further set a new historical high for the e-commerce giant.
S&P 500 index rose 0.15% to close at 5477.90 points; Dow Jones Industrial Average rose 0.04% to close at 39127.80 points; The technology stock-dominated Nasdaq Composite index rose 0.49% to close at 17805.16 points.
(Source: FX168)
(Source: FX168)
Nvidia shareholders meeting.
The Nvidia shareholder meeting lasted only about 30 minutes. Nvidia did not release any new products or make any new product-related comments from executives at this meeting. Judging from the stock price performance, investors had a mediocre response to the meeting.
During the meeting, Nvidia's stock price maintained a decline of more than 2%, but rebounded in the last trading session and closed up 0.25%.
(Source: Google)
Mark Haefele of UBS Global Wealth Management said, 'We are still optimistic about AI, but we believe that appropriately adjusting the scale of technology investment is the key to dealing with volatility while maintaining strategic investment in the technology we believe will drive growth in the next few years.'
Amazon's market value exceeded USD 2 trillion.
Amazon led the way among technology giants, rising nearly 4% and becoming the fifth U.S. company ever to exceed a market value of USD 2 trillion.
(Source: Google)
Several large technology company stock prices rose, with Apple up 1.9% and Microsoft up 0.2%. Their market values often have a significant impact on market trends.
Market Focus: PCE Data
This week, the focus on Wall Street will be on the latest inflation report to be released by the government on Friday.
Personal consumption expenditure index (PCE) is the Federal Reserve's preferred inflation gauge. Wall Street expects the index to show that the May inflation rate fell from 2.7% in April to 2.6%.
The latest inflation data may affect the central bank's decision on when to begin cutting interest rates.
Bank Stress Test
The Fed announced the results of its annual bank stress test after the market closed.
The latest bank stress test results from the Fed showed that the largest US banks will have enough capital to withstand severe economic and market turmoil, but due to higher portfolio risks, these banks will face greater assumed losses this year.
All 31 of the largest US banks can continue to lend in the event of a severe economic downturn. The bank's balance sheet accepted test scenario situations, including a 10% unemployment rate, a 55% stock market crash, and a 36% drop in house prices.
Market view
Driven by the largest stock market rally, the S&P 500 index is expected to perform strongly in the first six months of this year. Jack Ablin of Cresset points out that dividing S&P 500 index stocks by market capitalization can display a stable stair-step performance pattern: the larger the stock, the better the performance.
David Bahnsen, chief investment officer of the Bahnsen Group, said the stock market is currently extremely expensive and that adjustments and settlement of stock prices of large technology companies are looming.
BI strategist Gina Martin Adams wrote, 'The technology and technology-related communication industries have the strongest price momentum, but the weakening of profit-dominant status and high relative multiples have caused these two groups to fall in the rankings.'
Bond market
US Treasury yields rose and fell. The yield on the Treasury bond rebounded from a three-month low.
Sales of $70 billion 5-year Treasury bonds show strong demand.
The yield on the 10-year US Treasury bond rose from 4.25% on Tuesday evening to 4.32%. Since breaking through 4.70% at the end of April, the yield has been falling, easing pressure on the stock market.
Focus stocks
FedEx rose more than 15% as the company's 2025 profit forecast exceeded Wall Street's expectations.
Rivian's stock soared more than 23% after Volkswagen announced its plan to invest up to $5 billion in the struggling electric automaker.
Micron Technology fell more than 5% after hours as its revenue expectations failed to meet some investors' high expectations.
Chipotle, the Mexican burrito retailer, rose slightly by 0.3% as its 50:1 stock split took effect this morning. This is the largest stock split in the history of the New York Stock Exchange. Previously, the company was one of the most expensive stocks in the S&P 500 index.
General Mills, the maker of Cheerios, fell by 4.59% after the company reported lower earnings for the past quarter than analysts had expected. Against the backdrop of persistent high inflation, consumers have become more cautious and price-sensitive, leading to a continuous decline in the company's sales.
Whirlpool rose more than 17% after Reuters reported that Robert Bosch GmbH is considering acquiring the company.
Moderna fell more than 11% after new data showed that the effectiveness of Moderna's respiratory syncytial virus vaccine sharply declined in the second year and was lower than that of its competitors' vaccines.
Airbus fell 2.82% as there is a risk of delays in delivering some planes over the next two years, indicating that supply chain problems at the world's largest aircraft manufacturer may continue beyond this year.