S&P 500 and Nasdaq Extend First Half Returns as Artificial Intelligence-Linked Stocks Dominate

Barry Adams
28 Jun, 2024
New York City

Stock market indexes on Wall Street advanced as investors reviewed the latest update on inflation and market statistics for the month, week, and first half. 

The S&P500 index and the Nasdaq Composite extended weekly gains after the alternative measure of inflation slowed in May as expected. 

The personal consumption expenditures price index in May slowed to an annual rate of 2.6% from 2.7% in the previous month, the Commerce Department reported on Friday. 

On a monthly basis, the overall PCE price index was unchanged. 

The core PCE index, which excludes food and energy prices, also increased 2.6% from a year ago and 0.1% from the last month. 

Investors have been eager to parse inflation data as they try to determine when the Federal Reserve is likely to begin lowering interest rates. 

On the last trading day of June, investors are reviewing the market performance. 

This week, the S&P 500 index gained 0.6% and the Nasdaq advanced 1%. 

In the second quarter, the Nasdaq Composite added 9% and the S&P 500 index advanced 4%. 

In the first half, investors rushed to add artificial intelligence stocks, driving the Nasdaq up 19% and the broader S&P 500 index up 15%. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.7% to 5,521.90, and the Nasdaq Composite rose 0.9% to 18,016.88. 

The yield on 2-year Treasury notes edged lower to 4.68%, 10-year Treasury notes decreased to 4.27%, and 30-year Treasury bonds edged higher to 4.42%.

WTI crude oil decreased $0.03 to $81.70 a barrel, and natural gas prices fell 2 cents to $2.66 a thermal unit.

Gold decreased by $1.15 to $2,328.63 an ounce, and silver rose 32 cents to $29.32. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.95.

 

U.S. Stock Movers

Nike plunged 18.2% to $77.10 after the athletic shoe maker reported weaker-than-expected revenue in the latest quarter. 

The retailer also estimated revenue in the current quarter is likely to decline by 10%, and the company estimated fiscal 2025 revenue to fall in the mid-single digits. 

Infinera soared 17.3% to $6.17, and the optical networking company agreed to be acquired by Nokia Corp. for $2.3 billion.