U.S. Major Averages Rebounded Amid High Tech Stock Valuation Worries

Barry Adams
25 Jun, 2024
New York City

Major averages on Wall Street rebounded in Tuesday's trading a day after investors rotated out of semiconductor stocks into the energy and financial services sectors. 

The S&P 500 index and the Nasdaq Composite inched higher in early trading, and investors debated their corporate earnings outlook ahead of the end of the quarter this week. 

The Case-Shiller index, the controversial index tracking home prices in the 20 largest metropolitan areas, showed home prices slowed to a 7.2% annual pace in April from 7.5% in March. 

S&P Global reported the update on the metropolitan home price index. 

Later in the week, investors 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 increased 0.3% to 5,461.39, and the Nasdaq Composite rose 0.8% to 17,638.86. 

The yield on 2-year Treasury notes edged lower to 4.74%, 10-year Treasury notes decreased to 4.25%, and 30-year Treasury bonds edged higher to 4.39%.

WTI crude oil decreased $0.46 to $81.18 a barrel, and natural gas prices fell 2 cents to $2.75 a thermal unit.

Gold decreased by $9.03 to $2,321.27 an ounce, and silver declined 39 cents to $29.15. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.65.

 

U.S. Stock Movers

Pool Corp. declined 7.3% to $313.10 after the wholesale pool supply distributor lowered its full-year earnings outlook. 

Sea Limited decreased 2.8% to $73.75, and the Singapore-based online games developer was downgraded to "neutral" from "overweight" by J.P. Morgan. 

SolarEdge Technologies declined 15.8% to $28.07 after the company said it plans to raise $300 million through the sale of convertible notes expiring in 2029. 

Carnival Corp. rose 5.3% to $17.27 after the cruise line operator reported stronger-than-estimated second quarter results, and the company lifted its net yield and adjusted its net income outlook for the year. 

The largest cruise company also said bookings for 2025 are ahead of those for 2024. 

Nvidia rebounded 3% to $121.67 after falling more than 13% in the last three trading sessions and briefly surpassing Microsoft's market cap. 

In yesterday's trading, Nvidia declined more than 6%, its worst one-day decline since April, dragging down with it other semiconductor stocks and the Nasdaq Composite. 

Microsoft increased 0.2% to $448.52, and the European Commission, the executive arm of the European Union, said that the software company is "abusive" bundling its office productivity software, Office 365, with messaging and collaboration software, Team.