U.S. Major Averages Extend Rally from Peak to Peak for Five Consecutive Weeks

Barry Adams
08 Jul, 2024
New York City

Benchmark indexes gained in Monday's trading, and the two widely popular indexes advanced following the gains in the previous sessions. 

The S&P 500 index and the Nasdaq Composite traded up after closing at record highs in Friday's trading and extending weekly gains for the fifth week in a row. 

The two benchmark indexes have barreled through multiple highs this year amid better-than-expected earnings, a supportive economic backdrop, and interest rate-cut expectations. 

Bond traders are still estimating as many as two interest rate cuts of 25 basis points, starting as early as September. 

Investors are looking forward to the release of consumer price index and producer price index data for June on Thursday and Friday, respectively. 

Both inflation indexes are expected to rise by 0.1% from the previous month.

Moreover, Fed Chair Powell is scheduled to deliver his semiannual testimony on monetary policy before Congress.

Earnings season kicks off this week with earnings from PepsiCo, and leading banks including JP Morgan, Citigroup, Wells Fargo, and Bank of New York Mellon are set to report.

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,577.31, and the Nasdaq Composite rose 0.1% to 18,368.94.

The yield on 2-year Treasury notes edged lower to 4.63%, 10-year Treasury notes decreased to 4.28%, and 30-year Treasury bonds edged lower to 4.47%.

WTI crude oil decreased $0.75 to $82.71 a barrel, and natural gas prices edged up 4 cents to $2.37 a thermal unit.

Gold decreased by $16.75 to $2,373.77 an ounce, and silver fell 19 cents to $31.01. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.83.

 

U.S. Stock Movers 

Boeing Company rose 2.2% to $190.13 after the aviation company agreed to plead guilty to criminal fraud charges and pay a $243.6 million fine. 

In addition, the company agreed to have an independent compliance monitor for three years and invest at least $455 million in compliance and safety programs. 

After several months of negotiations with lawmakers and government regulators, the aviation company agreed it violated its previous agreement reached in the 2021 fatal 747 Max crashes. 

Paramount Global jumped 4.7% to $21.44 after the company agreed to merge with Skydance Media following contentious and protracted merger negotiations over several months.