Stock Market Recap – June 21, 2024

Today’s stock market performance was mixed, reflecting a day of cautious trading amid economic uncertainty and sector-specific challenges. Here’s a breakdown of key movements and highlights:

Major Indices:

• Dow Jones Industrial Average (DJIA): Closed up by 299.90 points, or 0.8%, at 39,134.76. The index was bolstered by gains in consumer and industrial stocks.
• S&P 500: Declined by 13.86 points, or 0.3%, finishing at 5,473.17. The index saw a broad-based decline with significant pressure on technology and financial sectors.
• NASDAQ Composite: Fell by 140.64 points, or 0.8%, to 17,721.59, driven by a sell-off in tech stocks.

Sector Performance:

• Information Technology: The sector experienced the largest decline, dropping 1.6%. Nvidia (NVDA) was a notable laggard, losing 3.5% as investors took profits following a strong rally earlier in the week.
• Consumer Discretionary and Industrials: These sectors provided support to the market, helping to offset losses in tech. Companies like Home Depot (HD) and Caterpillar (CAT) showed strong performance.

Economic Data:

• Investors awaited the preliminary June Purchasing Managers’ Indexes (PMIs). The S&P Global Manufacturing PMI is expected to register at 51.0, slightly down from 51.3 in May, indicating a marginal slowdown in manufacturing growth.
• Housing data released earlier showed a decline in both housing starts and building permits for May, missing expectations and contributing to a cautious market sentiment.

Earnings and Corporate News:

• Nvidia (NVDA): Despite a recent surge, Nvidia shares pulled back, highlighting the volatility in the semiconductor sector. The company’s strong performance in AI and data centers had previously driven the stock to new highs.
• Apple (AAPL): Shares were down slightly, contributing to the overall tech sector decline. Concerns about supply chain issues and potential regulatory challenges weighed on the stock.
• Tesla (TSLA): Also saw a decline as investors reacted to mixed news on production targets and delivery timelines.

Broader Market Trends:

• Economic Outlook: The U.S. economy shows signs of cooling, with weaker-than-expected data across various sectors and moderation in consumer spending. This has led to speculation that the Federal Reserve might consider cutting interest rates later in the year, which could support stock markets by reducing borrowing costs​ (Schwab Brokerage)​​ (James Investment)​.
• Gold: Amid economic and geopolitical uncertainty, gold prices have surged to record highs above $2,400 per ounce, reflecting its status as a safe-haven asset​ (James Investment)​.

Conclusion

Today’s trading session highlighted the mixed sentiment among investors, balancing optimism about potential rate cuts against concerns about economic growth and sector-specific challenges. As the market continues to digest economic data and corporate earnings, volatility is likely to remain a key feature in the short term.

For more detailed information and updates, you can visit the Charles Schwab Market Update and Wells Fargo Investment Institute.