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Nasdaq 100, Dow Jones, S&P 500 News: Stocks Drift Lower as Apple Pops to Record High

By:
James Hyerczyk
Updated: Jun 12, 2024, 04:22 GMT+00:00

Key Points:

  • The major U.S. stock indexes show mixed performance as the Federal Reserve begins its policy meeting. Investor concerns about interest rates weigh heavily.
  • Financial and growth stocks decline, with major banks and tech giants seeing significant drops. Concerns about a slowing economy impact market performance.
  • Affirm's shares rise over 5% after announcing integration with Apple Pay. General Motors also sees gains with a new $6 billion stock repurchase program.
Nasdaq Composite, S&P 500, Dow Jones

In this article:

U.S. Stock Indexes Mixed Ahead of Fed Policy Meeting

The major U.S. stock indexes are showing a mixed-to-lower performance as the Federal Reserve begins its key two-day policy meeting. Initially, stocks fell on Tuesday due to investor concerns that the central bank may not reduce interest rates this year.

At 15:47 GMT, the Dow Jones Industrial Average is trading 38662.23, down 205.81 or -0.53%. The S&P 500 Index is at 5347.60, down 13.19 or -0.25% and the Nasdaq is trading 17188.75, down 3.78 or -0.02%.

Market Performance

The S&P 500 saw the majority of its stocks trading lower, with about 100 names on track for a gain. At the New York Stock Exchange, roughly 1,900 stocks were down, while 688 advanced. Concerns about a slowing economy affected financial stocks like American Express and JPMorgan Chase. Tesla’s shares dropped over 2% ahead of a vote on CEO Elon Musk’s pay package. Conversely, Apple was one of the few winners, with its shares rising around 3.5%.

New Highs and Lows

Fourteen stocks in the S&P 500 hit new 52-week highs during Tuesday’s session, with eleven reaching all-time highs. These included Costco, Eli Lilly, and Apple. On the downside, four stocks hit new 52-week lows: Brown-Forman, Molson Coors, MarketAxess Holdings, and Paycom.

Notable Stock Movements

Affirm’s shares surged over 5% following the announcement that its buy now, pay later loans will be integrated into Apple Pay for U.S. users later this year. General Motors shares increased by 1.7% after the company’s board approved a $6 billion stock repurchase program, following an accelerated $10 billion buyback set to complete this month.

Sector Performance

Major banks, including JPMorgan Chase, Citigroup, and Bank of America, fell over 2%, pushing the broader banking index to a seven-week low. Rate-sensitive growth stocks like Microsoft, Meta Platforms, and Amazon also slipped, while Tesla fell over 3% to a one-month low. Ten of the S&P 500’s eleven sectors declined, with energy, utilities, and financials seeing significant losses. The small-cap Russell 2000 Index also dropped by 1%.

Market Forecast

The Federal Reserve meeting will conclude on Wednesday with an interest rate policy decision. Despite some signs of a slowing economy, a stronger-than-expected May jobs report has reduced the likelihood of rate cuts in 2024. Fed funds futures indicate no chance of a cut in the upcoming meetings, though there is a 66% chance of a cut in November. Barclays suggests equities may continue to rise if the market rally broadens, supported by better fundamentals after 1Q24 earnings.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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