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Last Week on Wall Street: Summer Market Gains [June 17-2024] – Video

Last Week on Wall Street

Stocks notched a solid gain last week, driven by the Fed’s decision, May’s inflation report, and Apple’s AI-related news.

The Standard & Poor’s 500 Index rose 1.62%, while the Nasdaq Composite picked up 3.27%. The Dow Jones Industrial Average, which has lagged most of the year, slid 0.52%. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 2.62% for the week through Thursday’s close.1

 


If you’d rather digest this market recap in video format, here you go. The article continues below video.

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S&P 500, Nasdaq Lead; Dow Lags

Market leadership took a familiar form. The tech-heavy Nasdaq led while the Dow trailed for the second week (and four out of the past six weeks).2

Stocks trended higher at the start of the week as investors cheered an artificial intelligence update from Apple.3,4

By midweek, the market had split, with the Nasdaq and S&P 500 moving higher while the Dow lagged. Investors were upbeat after learning that consumer prices rose less than expected in May and that the Fed decided to keep rates steady. However, some investors were unsettled after learning Fed officials had shifted their outlook and now only penciled in a single rate cut between now and year-end. A few months ago, the Fed had indicated as many as three cuts were possible.5

 

Busy Week for News

Last week was chock full of market-moving events. Between Apple’s AI update, inflation, and the Fed, it was a toss-up which one influenced sentiment the most.

AI’s outsized role in driving market momentum continued last week. OpenAI’s deal with Apple arrived at the start of last week, and the news followed OpenAI’s deal earlier this year with Microsoft.(These companies are mentioned for illustrative purposes only; it is not a recommendation to buy, sell, or hold this or any security.)6

Wednesday morning, the Consumer Price Index (CPI) was announced. A few hours later, the Federal Open Market Committee updated its monetary policy. Those pieces of news have only arrived together 13 times since 2008.

The FOMC kept rates steady at the current 5.25-5.50 percent target range, a widely expected decision. However, the tame CPI report caused some volatility as investors grappled with how the report may influence Fed policy.7,8

 

This Week: Key Economic Data

Monday: Empire State Manufacturing Index. Fed Official Patrick Harker speaks.
Tuesday: Retail Sales. Industrial Production. Fed Officials Thomas Barkin, Lori Logan, Alberto Musalem, and Austan Goolsbee speak.
Thursday: Housing Starts and Permits. Jobless Claims. Fed Official Thomas Barkin speaks. EIA Petroleum Status Report.
Friday: Existing Home Sales.

Source: Investors Business Daily – Econoday economic calendar; June 13, 2024 – The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

 

This Week: Companies Reporting Earnings

Monday: Lennar Corporation (LEN, LEN.B), La-Z-Boy Incorporated (LZB)
Thursday: Accenture (ACN), The Kroger Co. (KR)
Friday: FactSet Research Systems Inc. (FDS), CarMax Inc. (KMX)

Source: Zacks, June 13, 2024 – Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

  1. https://www.wsj.com/market-data
  2. https://www.wsj.com/market-data
  3. https://www.wsj.com/tech/ai/apple-openai-deal-big-tech-dc3fe4ce?st=fpkx5p906ob72jc&reflink=article_email_share
  4. https://www.cnbc.com/2024/06/10/stock-market-today-live-updates.html
  5. https://www.wsj.com/economy/central-banking/cpi-report-fed-meeting-interest-rate-ef93c8b0?st=k3t0luz4vzs5c6l&reflink=article_email_share
  6. https://www.wsj.com/tech/ai/apple-openai-deal-big-tech-dc3fe4ce?st=fpkx5p906ob72jc&reflink=article_email_share
  7. https://www.marketwatch.com/story/how-the-stock-market-performs-when-a-cpi-report-and-a-fed-decision-happen-the-same-day-9f1f9687?mod=isabel-wang
  8. https://www.wsj.com/economy/central-banking/cpi-report-fed-meeting-interest-rate-ef93c8b0?st=k3t0luz4vzs5c6l&reflink=article_email_share

 


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