US: S&P 500, Nasdaq edge to records on better inflation sentiment
THE S&P 500 and Nasdaq edged to fresh records on Tuesday as Federal Reserve Chief Jerome Powell reported “modest” progress in countering inflation ahead of the publication of influential US pricing data.
“More good data would strengthen our confidence that inflation is moving sustainably toward two percent,” Powell told a Senate panel in remarks that kept alive hopes for potential interest rate cuts later this year.
The Dow Jones Industrial Average finished down 0.1 per cent at 39,291.97.
The broad-based S&P 500 gained 0.1 per cent to 5,576.98, while the tech-rich Nasdaq Composite Index also advanced 0.1 per cent to 18,429.29, ending at a record for the sixth straight day.
Analysts have seen the spate of recent records as reflecting a combination of still solid labor market data with improving inflation trends.
But some market watchers think equities could be poised for a pullback.
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“So much good news is already discounted in the market that it would be easy for it to get a bit of news that’s negative and then correct,” said Tom Cahill of Ventura Wealth Management. “It’s gone so far so fast.”
Besides key inflation data, this week’s calendar includes a spate of earnings from JPMorgan Chase and other large banks, kicking off the second-quarter reporting season.
Among individual companies, Boeing fell 1.4 per cent after reporting it delivered 44 planes in June, its best month so far in 2024. However, overall commercial plane deliveries for the second quarter still dropped by nearly one-third to 92.
Tesla jumped 3.7 per cent, rising for the 10th straight session amid anticipation of the company’s presentation on “Robotaxis” next month. AFP
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