In the latest developments in the US stock market, Monday morning brought a mix of results. Nvidia, a top player in the technology sector, saw a drop of about 2% in its shares, impacting the tech sector’s performance negatively. This occurred at the start of the final week of a quarter that has so far seen impressive results on Wall Street.
While the Nasdaq Composite index saw a decrease of around 0.4%, the Dow Jones Industrial Average showed a 0.3% increase. The S&P 500, on the other hand, hovered just below stability. This volatility comes as the market anticipates the end of a quarter marked by significant gains, with the S&P 500 and Nasdaq both seeing increases of approximately 4.5% and 8%, respectively.
Fueled by advancements in artificial intelligence, the stock market saw a strong recovery but showed signs of fatigue at the end of last week. Nvidia, in particular, which had been a standout on Wall Street in 2024, saw its values decline after hitting all-time highs.
Alongside stock market fluctuations, the week ahead is expected to be crucial with key economic indicators on investors’ radar. All eyes are on the release of the May Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure. The “core” index, which excludes volatile items like food and energy, is projected to have risen by just 0.1% last month, marking the slowest increase since November.
On an annual basis, core PCE inflation is expected to show a 2.6% increase, the lowest since March 2021. This indicator is closely watched, especially after this month’s Consumer Price Index (CPI) hinted at a slowdown in inflation, bolstering the possibility that the Federal Reserve could potentially lower interest rates as soon as 2024.
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