Rate Path and Inflation Worries Dominate Trading Sentiment

Barry Adams
06 Jun, 2023
New York City

Stocks traded near flat-line on Wall Street and investors debated the latest economic development after a week of volatile trading. 

Market indexes rested and after the passage of debt ceiling agreement rate path, stubborn inflation and slowing corporate earnings dominated sentiment.  

Trading in Apple and chip stocks influenced broader averages and investors worried that the recent surge in chip stocks may be overdone. 

The S&P 500 and the Nasdaq Composite indexes are hovering near the nine-months high as investors shift focus to the Fed's rate decision next week. 

 

U.S. Indexes & Yields 

The S&P 500 index decreased 1.12 points to 4,280.72 and the Nasdaq Composite increased 0.1% to 13,256.81. 

The yield on 2-year Treasury notes decreased to 4.50%, 10-year Treasury notes edged down to 3.70% and 30-year Treasury bonds held at 3.90%. 

Crude oil decreased $1.90 to $70.75 a barrel and natural gas prices decreased 1 cent to $2.22 a thermal unit. 

 

U.S. Stock Movers

GitLab Inc increased 23.6% to $43.77 after the database developer reported smaller-than-estimated loss and offered a positive outlook for the current quarter and full-year. 

Coinbase Global Inc plunged 17.9% to $48.34 after the cryptocurrency exchange was sued by the Securities and Exchange Commission. 

The regulatory agency alleged that the company is acting as an unregistered broker. 

Yesterday, the SEC sued Binance alleging similar charges as the agency ramped up its oversight of the cryptocurrency market.  

Mobileye Global Inc declined 2.5% to $41.44 after the company announced its plan to sell 35 million class A shares in a secondary offering according to a regulatory filing. 

Thor Industries Inc soared 8.6% to $89.03 after the recreational vehicle maker reported better-than-expected quarterly earnings and lifted its full-year estimate. 

Taiwan Semiconductor Manufacturing Company  added  0.2% to $98.21 after Apple said it plans to use its own silicon for all of its computers using TSMC processes.  

With the release of its own chip, Apple has moved away from Intel and all computing devices made since 2020 will not have chips made by Apple.