[ad_1]
The artificial intelligence tech giant grabbed the top spot on Wall Street from Microsoft, which has been trading the crown back and forth with Apple after they wrested it from past titans like Big Oil behemoth Exxon Mobil and Big Tobacco firm Philip Morris.
Loading
Of course, a potential danger of having a handful of superstars responsible for most of the US stock market’s run to records is a more fragile market. If more stocks were participating, it could be a signal of a healthier market.
US stocks broadly got some lift overnight from easing yields in the bond market. Treasury yields fell after a report showed sales at US retailers returned to growth last month but remained below economists’ expectations.
That could be an encouraging signal for the Federal Reserve, which is trying to pull off a tough balancing act for the economy. The Fed wants to slow the economy by just enough through high interest rates to get inflation under control. The hope is that it will cut its main rate, which is at its highest level in two decades, in time so that the slowdown stops short of a painful recession.
Following the retail sales data’s release, bets built among traders that the Federal Reserve will cut rates at least twice this year, according to data from CME Group. Fed officials themselves are largely penciling in one or two cuts in 2024.
The yield on the 10-year Treasury fell to 4.21 per cent from 4.29 per cent late Monday. The two-year yield, which more closely tracks expectations for the Fed, fell to 4.70 per cent from 4.77 per cent.
Loading
A survey of global fund managers by Bank of America showed they’re the most optimistic about stocks since the autumn of 2021, with relatively little hiding out in cash and allocations heavy to stocks. Fewer managers are also calling for a “hard landing” where the economy tumbles into a bad recession.
The downside of Tuesday’s weaker-than-expected data is that it could be a warning signal that the main engine of the US economy, spending by households, is cracking. Alongside May’s numbers, the US government also revised down figures for retail sales in prior months.
Inflation is still high, even if it’s slowed since its peak, and lower-income households in particular are struggling to keep up with the more expensive prices.
Lennar, a homebuilder, fell 5 per cent after co-CEO Stuart Miller said “challenged consumer sentiment” and swings in interest rates are testing the company. Its stock fell even though it reported better profit for the latest quarter than analysts expected.
Loading
Shares of Fisker more than halved to 2 cents after the electric-vehicle maker filed for Chapter 11 bankruptcy protection. The company cited “various market and macroeconomic headwinds.”
On the winning side of Wall Street was La-Z-Boy, which jumped 19.4 per cent after reporting stronger profit and revenue for the latest quarter than expected. The furniture maker said the current quarter is also off to a good start even as high interest rates keep a lid on housing activity.
All told, the S&P 500 rose 13.80 points to 5,487.03. The Dow gained 56.76 to 38,834.86, and the Nasdaq composite edged up by 5.21 to 17,862.23.
In other international markets, indexes continued to recover in Europe following last week’s rout. Surprise victories by far-right parties in elections had raised worries about the potential for mounting debt loads at the French government in particular.
France’s CAC 40 rose 0.8 per cent for a second straight gain.
In Asia, Japan’s Nikkei 225 rose 1 per cent. Heavyweight Toyota Motor climbed after its shareholders rejected a proposal to force Akio Toyoda, grandson of the automaker’s founder, to leave his post as chairman of the board.
AP
[ad_2]
Source link
