Benchmark Indexes Hover Near Record Highs, Mega-cap Tech Stocks Retreat

Barry Adams
24 Jun, 2024
New York City

Market indexes struggled to find a direction in early trading on Monday as investors turned cautious after a two-month market rally. 

The S&P 500 index and the Nasdaq Composite edged lower following the advance in the last eight of the nine consecutive weeks, and for the year, both indexes are up 15% and 19.2%, respectively. 

Market heavyweight Nvidia declined 3% and extended three-day loss to more than 10% after investors turned cautious following the rapid rise of the stock this year. 

For the year so far, Nvidia jumped 158% as of Friday's trading. 

The yield on the 10-year Treasury held steady ahead of a flood of economic data later this week, and crude oil prices hovered near a two-month high. 

This week, investors in the U.S. are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.

Investors are also awaiting the release of consumer spending and income and the PCE price indicator for May, the preferred measure of inflation by the Fed’s policymakers.

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.03% to 5,463.30, and the Nasdaq Composite fell 0.1% to 17,676.18. 

The yield on 2-year Treasury notes edged lower to 4.75%, 10-year Treasury notes decreased to 4.26%, and 30-year Treasury bonds edged higher to 4.41%.

WTI crude oil decreased $0.01 to $80.58 a barrel, and natural gas prices fell 2 cents to $2.69 a thermal unit.

Gold increased by $6.32 to $2,328.32 an ounce, and silver declined 1 cent to $29.55. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.48.

 

U.S. Stock Movers

RXO soared 10.6% to $22.35 after the trucking company said it plans to acquire Coyote Logistics, a freight brokerage business, from UPS for $1.03 billion. 

"The addition of Coyote’s customer base will diversify RXO’s vertical mix and will increase the number of customers that do more than $1 million in business with us by approximately 80%. 

This acquisition will provide RXO with both immediate and long-term opportunities for revenue and earnings growth and will generate significant returns for shareholders," said Drew Wilkerson, chief executive of RXO. 

UPS jumped 0.4% to $137.30. 

Apple Inc. declined a fraction to $207.49 after regulators in the European Union said that the company is in breach of the new Digital Markets Act. 

The regulators said that Apple's App Store rules "prevent app developers from freely steering consumers to alternative channels for offers and content." 

Resmed Inc. declined 6.2% to $193.02 on the news last week that Eli Lilly's tirzepatide weight loss drug lowered the severity of obstructive apnea. 

Eli Lilly rose 0.4% to $887.64.