Stocks wrapped up the holiday-shortened session mixed, as the S&P 500 (SPX), the Nasdaq Composite (NDAQ), and the Nasdaq-100 (NDX) finishing at fresh records, while the Dow Jones Industrial Average (DJIA) ended the day with a minor loss. U.S. markets are closed today in observance of Independence Day.
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The blue-chip DJIA was weighed down by declining healthcare and consumer stocks, while a renewed strength in technology, consumer goods, and other industries lifted the S&P 500 and the tech benchmarks. Semiconductor shares shone as NVIDIA (NVDA) reversed its previous declines, while Taiwan Semiconductor Manufacturing (TSM) and Broadcom (AVGO) continued climbing higher.
In addition, Tesla (TSLA) surged on relief over a smaller-than-expected drop in second-quarter vehicle deliveries. Meanwhile, Amazon (AMZN) detracted from DJIA’s performance yesterday after hitting an all-time high on Tuesday, falling on the news that the company’s co-founder Jeff Bezos plans to sell $5 billion worth of the stock.
Market indexes were strongly supported by data pointing to a continued softening of the economy, which sparked speculations about a Fed rate cut as soon as September. The ADP Employment and the weekly jobless claims reports this week signaled easing job-market conditions, while weaker-than-expected PMI data corresponded with the deceleration trend seen in recent economic reports.
However, the picture is missing a key component that will be released this Friday: the all-important job market report, which includes earnings growth data. If the jobs report falls within the slowdown trend, it may support the outlook for easing consumer demand-induced price pressures and may lift the odds for a September rate cut.
For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.
