The artificial intelligence craze drove the S&P 500 index and the Nasdaq Composite higher in the second quarter and extended gains in the first half.

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On Friday, investors are anticipating the release of the alternative measure of inflation. European markets braced for parliamentary elections in the UK and France next week. Asian currency markets fear another round of competitive devaluation as Japan lets the yen sink.

Stocks were in a holding pattern after investors reviewed mixed quarterly earnings and economic updates. New durable goods orders rose unexpectedly in May, and GDP growth in the first quarter was revised higher in the third estimate.

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Market indexes in New York, Europe, and China lacked momentum, and the Japanese yen searched for a lower bottom amid a lack of support from the Bank of Japan. 

Tech stocks attempted to rebound for the second day in a row, and investors looked ahead to the release of the PCE price inflation update. Single-family new home sales in May declined in double-digits to a six-month low.

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U.S. major averages rebounded, Treasury yields held steady, and crude oil prices fell. European markets closed down amid election jitters in the UK and France. The Japanese yen's weakness signals lower lows for the embattled currency. The Chinese premier reiterated the annual economic growth target and dismissed economic decoupling risks. 

Investors rotated out of high-prices mega-cap tech stocks into financial services and energy sectors amid valuation worries following the recent run-up.

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U.S. tech stocks took a much-needed breather after rising for two months in a row as investors rotated into energy stocks and banks. European markets closed higher, but French political turmoil weighed on the market. The Japanese yen fell to a three-decade low, testing the Bank of Japan's resolve to defend the currency. 

Benchmark indexes rested near record highs as tech stocks retreated from recent highs.

Stocks retained a downward bias, but benchmark indexes are set to close higher in the holiday-shortened week.

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U.S. major averages flirted with new record highs as the AI-driven tech rally continued. European markets extended weekly gains after the UK and Norway held their interest rates steady and Switzerland lowered rates for the second consecutive time. 

The S&P 500 index and the Nasdaq Composite traded at new intraday record highs, and Nvidia retained its leadership in the artificial intelligence-driven market rally.

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Optimism Rules U.S. and Global Stock Markets

Jun 18, 2024
Alexander Garcia
U.S. indexes hovered near record highs, European markets advanced for the second consecutive day after significant losses in the previous week, India indexes traded at new highs, and market sentiment remained weak in China and Japan.

Retail sales in May edged slightly higher from the previous month but rose 2.3% from a year ago, and sales advanced in 9 of the 13 categories. Market indexes advanced to new highs, supported by another day of gains in semiconductor stocks.

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The U.S. indexes headed higher to new highs ahead of the release of retail sales and housing market updates this week. Nvidia, Broadcom, and Apple led the advance in tech stocks. European markets attempted a rebound after sharp selloffs last week. China's improving consumer spending was overshadowed by the deepening malaise in the property sector.