Nasdaq Achieves Fifth Consecutive Record Close Amid Mixed Market Performance

June 15, 2024
Paul Svensen

The Nasdaq Composite marked its fifth consecutive record close on Friday, driven by gains in technology stocks like Adobe and Nvidia. Meanwhile, the S&P 500 and Dow Jones Industrial Average ended slightly lower, reflecting a mixed market performance influenced by economic data and investor sentiment.

Key Takeaways

Nasdaq Composite: Achieved a fifth straight record close, rising 0.1% to 17,688.88.
S&P 500: Ended a four-day streak of record closes, dipping 0.04% to 5,431.60.
Dow Jones Industrial Average: Fell 0.15%, closing at 38,589.16.
Adobe: Shares surged 14.5% after raising its annual revenue forecast.
Consumer Sentiment: University of Michigan’s index fell to 65.6 in June, below expectations.
Treasury Yields: Both 10-year and 2-year yields fell, indicating cooling inflation.

Market Performance

The Nasdaq Composite turned higher in the final minutes of trading, marking its fifth record close in as many days. The S&P 500 snapped its own streak at four, while the Dow Jones Industrial Average finished down 58 points, or 0.2%. The S&P 500 dipped less than 0.1%, while the Nasdaq Composite gained 0.1%. The Dow lagged the two other indexes for most of the week, with the S&P 500 and Nasdaq Composite still gaining on the week, while the Dow was down solidly.

Economic Indicators

The University of Michigan’s consumer sentiment index fell to 65.6 in the first two weeks of June from 69.1 in May, according to preliminary numbers. This was below the consensus estimate of 73. Inflation expectations for the year ahead were steady, but long-run expectations rose to 3.1% from 3% in May. Producer prices slipped in May, another sign of cooling inflation, while jobless claims unexpectedly rose.

Sector Performance

The S&P 500’s information technology and communication services were the only major sectors that posted solid gains. Materials and industrials stocks struggled, with fewer than one-third of the S&P 500 stocks rising on the day. Broadcom’s earnings report showed a boom in AI demand, boosting stocks that are expected to benefit from investment in the technology.

Individual Stock Movers

Adobe: Shares jumped 14.5% after the company raised its annual revenue forecast, driven by demand for its AI-powered software.
Nvidia: Shares ended up 1.8% after briefly surpassing Apple as the world’s second-most valuable company.
IN8bio: Shares fell 29% to $1.20 despite favorable data from a Phase 1 leukemia study.
RH: Shares tracked for their biggest one-day loss in more than four years, falling around 18% after a wider-than-expected quarterly loss.

Investor Sentiment

Investors are still trying to gauge how soon the Federal Reserve might be able to cut interest rates. Fed Bank of Chicago President Austan Goolsbee expressed relief after data showed inflation in May had cooled but indicated a need for more months of similar data before considering rate cuts. On Wednesday, Fed policymakers dialed back their projections for three cuts this year to just one.

Conclusion

The Nasdaq’s fifth consecutive record close highlights the strength of technology stocks in the current market environment. However, mixed economic data and investor sentiment suggest that other sectors and indexes may continue to face challenges in the near term.