📷 Image Credits: Investing.com
The S&P 500 and Nasdaq closed at record highs on Monday as investors awaited this week’s consumer prices report and Federal Reserve policy announcement. Nvidia shares saw a 0.7% increase following a 10-for-one stock split, leading some to speculate about the chip maker potentially joining the Dow. This week will see the release of the Consumer Price Index report for May alongside the conclusion of the Fed’s two-day policy meeting. The central bank is expected to keep interest rates steady while providing updated economic and policy projections, with investors eager for hints about future rate cuts.
Experts note that this is a crucial week for the market, with the Federal Reserve’s comments holding significant weight. Market participants are also keeping a close eye on Wednesday’s CPI report as an indicator of economic health and inflation. A stronger-than-expected jobs report for May led to a decrease in rate cut expectations for September, with the chances of a reduction now at 50%. Traders are adopting a cautious approach to hedging amid uncertainties surrounding the upcoming announcements.
Tech giant Apple’s shares dipped by 1.9% on the first day of its annual developer conference, with investor focus shifting to updates related to artificial intelligence integration within its products. Among the day’s gainers was Southwest Airlines, which surged by 7% following activist investor Elliot Investment Management’s disclosure of a $1.9 billion stake in the company. Additionally, Diamond Offshore Drilling shares climbed by 10.9% after receiving a buyout offer from Noble in a $1.59 billion deal. Overall, market sentiment remains cautiously optimistic as traders analyze the latest developments and await crucial announcements.
