U.S. Major Averages Lacked Direction On Wall Street Ahead of Inflation Update

Barry Adams
26 Jun, 2024
New York City

Benchmark indexes in early trading lacked direction, and tech stocks extended gains for the second day in a row. 

The S&P 500 index edged lower, but the Nasdaq Composite advanced after Nvidia extended the previous session's gain of 7%. 

Broader averages have been overshadowed by the movement in Nvidia stock because the market cap-weighted S&P 500 index has been dominated by the chipmaker's $3.1 trillion valuation. 

Single-family new home sales in May declined 16.5% from a year ago to an annual pace of 619,000, the U.S. Census Bureau reported Wednesday. 

The home sale rate declined to the lowest pace in six months after high home prices and mortgage rates negatively affected home affordability. 

On the economic front, investors are looking ahead to the release of consumer spending, income, and PCE price inflation indicator updates for May. 

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.

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.03% to 5,466.33, and the Nasdaq Composite rose 0.5% to 17,775.40. 

The yield on 2-year Treasury notes edged lower to 4.73%, 10-year Treasury notes increased to 4.29%, and 30-year Treasury bonds edged higher to 4.42%.

WTI crude oil decreased $0.04 to $80.78 a barrel, and natural gas prices fell 2 cents to $2.79 a thermal unit.

Gold decreased by $17.47 to $2,302.27 an ounce, and silver declined 9 cents to $28.77. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 106.05.

 

U.S. Stock Movers

FedEx rose 12.9% to $289.63, and the parcel delivery company reported better-than-expected revenue and adjusted earnings in its latest quarter. 

Rivian soared 29% to $15.38 after the electric vehicle struck a deal with the German automaker Volkswagen AG. 

Volkswagen plans to invest $1 billion in a joint venture with Rivian and increase its investment to as much as $5 billion over the next several years. 

Whirlpool Corporation rose 12.8% to $98.33 on a Reuters report that the German company Bosch is considering making an offer for the home appliance maker. 

Nvidia Corp. jumped 1.3% to $127.15, and the artificial intelligence chip maker extended its previous session gain of 7%. 

Nvidia's market value briefly surpassed Microsoft's market cap of $3.1 trillion before edging down in last week's trading.