U.S. Stocks Struggle Ahead of Fed's Rate Decisions, Nvidia Trades Down Post Split

Barry Adams
10 Jun, 2024
New York City

Stocks struggled to find their footing in early trading on Monday as benchmark indexes jumped more than 1% in the previous week. 

The S&P 500 index and the Nasdaq Composite advanced 1.3% and 2.4%, respectively, in the previous week after the nonfarm payrolls surpassed the highest expectations. 

Investors are hoping to get more insights into the policymakers' thinking as the Federal Reserve is set to announce its rate decisions and economic growth projections on Wednesday. 

The Fed is expected to keep its interest rate range unrevised between 5.25% and 5.50%.

Investors are also looking forward to May's inflation data on Wednesday, which could provide additional insights on the strength of inflationary pressures and the future rate path. 

The consumer price index is expected to hold steady at 3.4%, and core inflation is likely to edge slightly lower to 3.5%.

Last week, the S&P 500 index traded at a new intraday record high amid continued strength in semiconductor stocks powering artificial intelligence development. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,358.77, and the Nasdaq Composite fell 0.01% to 17,176.77.

The yield on 2-year Treasury notes edged higher to 4.89%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds edged higher to 4.59%.

WTI crude oil increased $0.46 to $76.01 a barrel, and natural gas prices rose 14 cents to $3.06 a thermal unit.

Gold increased by $12.79 to $2,305.78 an ounce, and silver rose 31 cents to $29.78. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.26.

 

U.S. Stock Movers

Nvidia edged down 0.2% to $120.10 after the advanced chipmaker traded for the first time, reflecting a 10-to-1 stock split. 

Nvidia's market cap crossed the $3 trillion mark for the first time in Friday's trading after investors bid up the stock by 10% in the previous week. 

GameStop declined 4.5% to $27.07, and the video game retailer extended losses following the roller-coaster trading in the previous week. 

Meme stock plunged in Friday's trading after the company announced another stock offering and said sales plunged in its latest quarter. 

Trader and meme stock influencer Keith Gill, also known by his screen name "Roaring Kitty," announced in his first ever live stream on X and YouTube in a few years that he did not have institutional investors. 

Previously, Gill shared a screenshot of his holding on GameStop that showed a market worth of $116 million. 

KKR, GoDaddy, and CrowdStrike advanced after the S&P Dow Jones Indices plans to include these three stocks in the S&P 500 index, replacing Robert Half, Comerica, and Illumina. 

KKR jumped 8.8% to $106.56, GoDaddy advanced 2.2% to $142.40, and CrowdStrike Holdings gained 7.7% to $376.60. 

Robert Half declined 0.4%, Illumina fell 5.5%, and Comerica dropped 2.4%.